This study explores how bilateral media sentiment between China and host countries affects cross-border mergers and acquisitions (M&As). Drawing on data from Global Database of Events, Language, and Tone (GDELT) covering the period 2006–2022, we empirically examine how media sentiment influences both the propensity and value of cross-border transactions by Chinese firms. The results indicate that positive bilateral media sentiment significantly increases the likelihood of Chinese enterprises undertaking cross-border deals. However, consistent with sentiment-based theories, we find that bilateral media sentiment negatively affects transaction value when acquiring firms are non-state-owned enterprises, even though overall sentiment remains a positive driver of deal occurrence. These findings provide novel evidence on the role of media sentiment in shaping international investment behavior. The study advances existing research on media sentiment and strategic decision-making in cross-border deals and underscores the importance for Chinese firms recognizing contextual factors that may influence the success of their international expansion strategies.
Liu et al. (2026) studied this question.