Abstract
Extending the literature in path dependence we study the role that prior domestic M&A experience plays in the firms first cross-border M&A. Using 333 listed Chinese firms we use organizational learning to explain what firm and market characteristics may impact the path dependencies related to the chosen ownership level for the newly acquired firm. We find that domestic M&A performance, management stability, international experience, target-to-target similarity, and culture impact the likelihood of the firm having a similar ownership structure from its domestic M&A activities to its first cross-border M&A. Implications for path dependency and managers are discussed.