Research On The Influencing Factors Of Value Creation In Chinese Enterprises’ Cross-Border Mergers And Acquisitions

Nowadays cross-border merger and acquisition has become an important strategy for enterprises to continuously create value and compete in the fierce global market.In the context of the Chinese government’s promotion of "going out" strategy,Chinese enterprises actively initiate cross-border mergers and acquisitions for international expansion.Especially after the "One Belt And One Road" initiative was put forward,Chinese enterprises became more active in cross-border mergers and acquisitions.In recent years,however,Chinese companies’ continued cross-border mergers and acquisitions have come under increasing scrutiny,both in the west and at home.Under the background of global exchange rate volatility,economic downturn and sino-us trade tension,how Chinese enterprises create value through serial cross-border mergers and acquisitions is of great practical significance.Although scholars and practitioners have spent great efforts to explore the key success factors and performance in cross-border mergers and acquisitions,there is still a lack of research on cross-border mergers and acquisitions of emerging economies represented by China.On the one hand,the perspective of merger and acquisition research is rigid,and it is mostly based on the theory summarized from the practice of cross-border merger and acquisition in developed countries to explain the value creation of merger and acquisition,and acquisition is usually regarded as an independent event.But the reality is that most acquisitions are part of a larger acquisition strategy that is more likely to require a series of significant organizational reorganizations to more fully realize the benefits of multiple acquisitions.On the other hand,different theories have different understandings of the connotation of value creation of M&A and lack of comprehensive research.In addition,due to the increase of research disciplines,more and more variables have been included in the research of mergers and acquisitions,but there is no unified view on the impact of value creation,which requires further development and extension of the theory.The internationalization practice of Chinese companies provides a new perspective for Cross-Border mergers and acquisitions,as well as a good opportunity for further extension of theories,especially the combination of multiple theories.In this paper,first Of all,by means Of literature metrology software CiteSpace recorded citation database of Web of Science for authority of Cross-Border merger and acquisition related topics paper analyzed the literature metrology,explains the CrossBorder M&A on the basis of the theoretical basis and research front development,summarizes the future research direction and key point,laid the foundation for followup study.Then,the paper summarizes the relationship framework of the factors influencing the value creation of cross-border mergers and acquisitions through literature review,and verifies which factors will directly affect the value creation of cross-border mergers and acquisitions through Meta analysis.On this basis,the qualitative comparative analysis method is used to empirically study the influence of the combination relationship between variables on restrained creation.Finally,through a series of vertical case analysis of the cross-border mergers and acquisitions of junsheng electronics from the perspective of process,the possible path of value creation for serial cross-border mergers and acquisitions of Chinese enterprises is proposed,and the mechanism of value creation is revealed.Through the above research,the research conclusions of this paper include the following points:First of all,the research in the field of cross-border mergers and acquisitions is always centered on value creation,and the theoretical basis is constantly enriched.However,the discovery of new theories needs to start from the enterprises of emerging economies,focus on the combination of multiple theories for analysis,and look for the long-term value creation mechanism of cross-border mergers and acquisitions from the perspective of process.At the same time,different measurement methods of variables and enterprise characteristic types need to be included in the study.Secondly,the research results based on meta-analysis show that home country economy,cash payment,intangible assets of the acquirer and expansion experience have a direct positive effect on the value creation of cross-border M&A,while the scale of the target party has a direct negative effect.The economic level of host country can promote the value creation of acquirers in emerging economies.The better the acquirer’s pre-acquisition performance,the worse the non-economic performance,and the worse the overall performance of the acquirer in developed countries.System and culture have no direct influence on the performance of Cross-Border mergers and acquisitions.Third,the research results of qualitative comparative analysis show that the value creation of private enterprises’ cross-border M&A is highly dependent on the experience of cross-border M&A,while the value creation of state-owned enterprises’ cross-border M&A is more related to their own identity.Compared with the experience of crossborder mergers and acquisitions in the industry,the experience of regional cross-border mergers and acquisitions is more versatile for private enterprises,which can realize the value creation of cross-border mergers and acquisitions in the case of large cultural differences,and is not affected by the institutional distance.However,the experience of mergers and acquisitions in the industry can only deal with the impact of institutional or cultural differences.When private enterprises hope to acquire targets from countries with a relatively large cultural distance,they can also enter the country and acquire targets through diversified mergers and acquisitions,so as to achieve value creation,if they cannot acquire industry merger and acquisition experience in advance.Enterprises can not only conduct vertical internationalization in the same host country along the regional expansion,but also conduct horizontal internationalization in multiple host countries through industry expansion,thus becoming a truly globalized enterprise.Fourth,the research results of the longitudinal case study show that the resource arrangement process after merger and acquisition is as important as the company’s resources.Chinese enterprises lacking resources will experience the evolution process of "two-way resource structuring--vertical resource structuring--horizontal and vertical resource structuring cycle" in the process of serial cross-border M&A.With the accumulation of resources in the process of serial cross-border mergers and acquisitions of Chinese enterprises,the restructuring strategy gradually changes from stable restructuring to rich restructuring and finally to pioneering restructuring.The innovative value of serial cross-border mergers and acquisitions of Chinese enterprises mainly relies on three ways of resource leveraging: environment leveraging,business leveraging and platform leveraging.Entrepreneurship plays an important role in the resource arrangement of serial cross-border mergers and acquisitions.Research conclusion of this paper is to further clarify value creation influence factors and regulation of transnational merger and acquisition,on the basis of the succession of the cross-border M&A to our country enterprise transnational merger experience,the role of culture and the system differences between carried on the thorough analysis,and with new perspective of "Process of serail cross-border M&A" before and after the M&A of resource orchestration process are summarized,to guide our country enterprise through serial cross-border M&A create value has important practical significance.On the one hand,this paper clarifies the influential factors that have a significant effect on value creation in transnational mergers and acquisitions,and clarifies the measurement methods of value creation and the regulating effect of the differences between the main body of mergers and acquisitions.Besides,this paper breaks through the implicit assumption that each cross-border merger and acquisition is an independent event and contributes to the literature of cross-border merger and acquisition.Meanwhile,the paper identifies three resource leveraging methods for emerging economy enterprises to create value from serial cross-border mergers and acquisitions,thus deepening the literature on the internationalization of emerging economy enterprises.In addition,it also introduces the theory of resource arrangement into the research field of cross-border mergers and acquisitions,and expands the connotation of the theory of resource arrangement.Finally,we study the combination of transfer theory and institutional and cultural perspective,from the side to open the "experience" of the specific content and mode of action,deepening the impact of mergers and acquisitions experience of this school of theory.The value creation model of serial cross-border M&A constructed in this paper provides a powerful theoretical and practical basis for guiding Chinese enterprises in serial cross-border M&A.