• Korea Trade Review
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• v.41 no.2
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• pp.61-96
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• 2016

This study investigates the effects of M&A experience of Chinese firms and characteristics of deal partners in cross border M&A deal failures. 1,610 firms that participated in 1,558 cross border M&As from 2000 to November 2015 are used as samples. The dependent variable is the M&A transaction failures, which were cases of deal pending or withdrawal of Chinese firms. Major independent variables are the nationality diversity of transaction partner firm, the partner firm belonging to a developed country, domestic M&A experience of the Chinese firms, M&A experience in a particular target country, etc. After conducting a probit model analysis, we find that deal partner firm's nationality diversity increases the failure rate of M&A. While prior domestic M&A experience in China has no influence on deal failure, prior M&A experience of Chinese and focal firms in a particular country have a negative effect on the probability of deal failure. This study has academic implication on figuring out why firms are likely to fail in the process of strategic activities based on the inter-organizational learning through partnerships perspective.

• The Korean Journal of Air & Space Law and Policy
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• v.32 no.2
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• pp.129-153
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• 2017

Fair Competition policy in aviation field has been discussed since open skies policy began in 1970s. This issue has been also the main topic in the ICAO's Worldwide Air Transport Conference, the Air Transport Symposium, etc. ICAO defines competition as the existent or potential rivalry between two or more operators, carriers or groups, striving for advantages in the same market based on different prices, qualities and services. In a broader sense, the definition includes more various meanings; reasonable, fair, effective, and unrestricted competitions. Nowadays, competition laws and regulations to air transportation have been applied more frequently and the issues varies from antitrust immunity, mergers and alliances, abuse of dominant positions, capacity dumping and predatory pricing, sales and marketing, to airport charges and fees, state aid and loan guarantees. Now, the competition among the airlines or nations in aviation industry is changing to cooperation level. A lot of airlines try to survive by various cooperation methods. Therefore the policy of Korean aviation industry should be developed, taking so-called "the viewpoint of national aviation industry ecosystem" into consideration and Korean government should prepare a policy of fair competition to cope with it. First, in the process of open skies policy with neighboring countries such as China, Japan and the Middle East, it is necessary to apply the fair competition act and prepare laws and regulations to implement it. Second, the standards of effective ownership and control of air transportation business should be reviewed. Third, in preparation for aviation agreements and liberalization, the Korean aviation industry needs to study and review competition and cooperation issues through the analysis of strict aviation market structure for airlines and airport operations. Fourth, it is necessary to create a fair air transportation environment for the development of air transportation and competitiveness through preemptive policies such as the approval of mergers, acquisitions, JV and the ripple effects analysis.