Does Chinese Investment into Europe Facilitate Strategic Asset Growth in the Chinese Parent Company? The Role of Entry Mode

Anderson, John; Sutherland, Dylan; Severe, Sean

Abstract

Strategic asset seeking foreign direct investment has undergone tremendous growth over the past decade. This paper first attempts to evaluate the location choice of such investments in Europe. We find that Chinese companies target strategic assets in Europe. The paper then moves to understand the efficacy of these investments in terms of the creation of strategic assets in the Chinese parent company. Our results show the intangible assets of Chinese domestic parent firms significantly increase in the wake of their investments. For greenfield investments, there is a longer time-lag in creation of intangible strategic assets than for acquisitions. However, greenfield investments result in a larger increase in intangible asset creation than acquisition investments.

Citation

Anderson, J., Sutherland, D., & Severe, S. (2024). Does Chinese Investment into Europe Facilitate Strategic Asset Growth in the Chinese Parent Company? The Role of Entry Mode. Economies, 12(3), Article 56. https://doi.org/10.3390/economies12030056

• Journal Article Type: Article
• Acceptance Date: Feb 15, 2024
• Online Publication Date: Feb 25, 2024
• Publication Date: Feb 25, 2024
• Deposit Date: Feb 15, 2024
• Publicly Available Date: Mar 14, 2024
• Journal: Economies
• Publisher: MDPI
• Peer Reviewed: Peer Reviewed
• Volume: 12
• Issue: 3
• Article Number: 56
• DOI: https://doi.org/10.3390/economies12030056
• Keywords: event study, innovation, Chinese outward FDI, strategic asset seeking
• Public URL: https://durham-repository.worktribe.com/output/2256843
• Publisher URL: https://www.mdpi.com/journal/economies