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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

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Authors

John Anderson

Sean Severe



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
Electronic ISSN 2227-7099
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

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