Ownership, Financial Constraints and Firm Performance: Foreign Acquisitions o

The increasing globalization of business has heightened the opportunities and pressures to engage in cross-border mergers and acquisitions (hereafter, CBM&As) involving transitional economies, which has grown dramatically over the past decades (Shimizu, et al., 2004). In the last few years, the world has witnessed the emergence of China as one of the most significant destinations for CBM&As, which had $2,561.9 billion worth of deals in 2012 (Barris, 2013). Based on the report by the Chinese Ministry of Commerce (Chinese Ministry of Commerce, 2014), there were 22,819 foreign invested companies in China and the foreign capital amount reached$ 1,239.11 billion by the end of 2013. Given its strategic geographical location, Hong Kong was the largest foreign investment partner of China, and their total investment value accounted for 59.23 per cent of the Chinese total foreign investment in 2013.