Abstract:

Overseas migration network has a very important impact on corporate cross-border M&A. This paper empirically examines the impact and mechanism of the effect between Chinese overseas migration network and micro-firm cross-border M&A （Mergers & Acquisitions） by constructing multiple indicators of both. It finds that there is a significant positive promotion effect of Chinese overseas migration network on cross-border M&A, and this effect shows significant heterogeneity in the institutional environment and cultural distance of the host country. Further, through the mediating effect model, this paper finds that immigration networks can promote cross-border M&A by enhancing Chinese business networks and reducing the differences in values between the two countries. Therefore, besides facilitating the fusion of policies concerning migration administration and cross-border M&A, it is necessary to strengthen the overseas migration network and enhance the interaction between Chinese enterprises and overseas Chinese businessmen, especially the role of the migration network in the countries along the Belt and Road to promote China′s internationalized export-oriented economic growth.

Key words: immigration networks, cross-border M&A, information asymmetry, cultural distance, transaction costs