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| A Study on the Influence of Performance Expectation Gap on the Entry Mode of Cross-Border M&A of Chinese Firms |
| WU Xiaojie，CHEN Xiaomei，WANG Xiuqiong，WANG Xueli |
| 1. Guangdong University of Technology, Guangzhou, China; 2. South China University of Technology, Guangzhou, China |
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Abstract Based on performance feedback theory and institutional theory, 355 firms listed on the Shanghai and Shenzhen Stock Exchanges A-share that conducted cross-border M&A in 2016-2018 are used to explore the effects of historical performance expectation gap and industry performance expectation gap on the entry mode of cross-border M&A of Chinese firms and further test the moderating effect of institutional differences. The findings show that,（i）The larger the performance expectation gap, the more Chinese firms tend to adopt the wholly-owned M&A entry mode to enter overseas markets;（ii）Institutional differences have a negative moderating effect on the positive relationship between performance expectation gap and firms’ choice of the sole proprietorship entry mode of cross-border M&A.
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Received: 28 January 2020
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