Beschreibung:
We explore the effect of genetic distance on cross-border mergers and acquisitions (M&A) using data from Chinese listed firms during 1996-2019. We find an inverted U-shaped relationship between genetic distance and the completion rate of cross-border M&A. Further research shows that this relationship is moderated by heterogeneity at the firm, industry, and country levels. In particular, the inverted U-shaped relationship is stronger for state-owned acquires. Such a relationship is significantly positive when the acquirer is listed overseas and the host country has high institutional quality, while it is significantly negative when the acquirer is in a sensitive industry. This study contributes to the research on the distance dimension of international business (IB), enriches theoretical perspectives regarding the completion of cross-border M&A, and provides practical inspiration for Chinese enterprises to make strategic decisions on cross-border M&A