Multiple Heterogeneity And The Decision Of Transnational M&A

Due to the objective economic factors and the needs of enterprises’internationa-lization development, China has entered a rapid development period of transnational M&A since2000. In the fifth wave of mergers and acquisitions, transnational M&A is gradually becoming the dominant mode, replacing the green investment. But the failure rate of transnational M&A is up to50%, one of the most important reason is that the enterprises don’t have a clear understanding of their own advantages and disadvantages, meanwhile their development strategies and decisions don’t meet their status. Then in the process of Chinese economic rapid development, whether should Chinese enterprises choose M&A? What kind of enterprises should choose transnational merger and acquisition as the main way for expansion? What factors have great influence on the decision of M&A?To answer these questions, the article is written from the view of new-new trade theory, using several methods including inductive analysis, empirical research and comparative research, to study the effect of Chinese manufacturing enterprises’multiple heterogeneity on the decision of transnational M&A. In the empirical part, virtual variables (have transnational M&A or not)is selected as the explained variable, meanwhile several microscopic indicators such as enterprise productivity, scale properties, technical manpower, the degree of internationalization and financial situation are selected as explanatory variables, to construct the Logistic two element discrete model. Depending on the availability and integrity,29150observed data is selected as the short panel data from2007to2011in Wind database.According to the study, familiar with the the result of enterprise export in new-new trade theory,"productivity paradox" phenomenon also appears when enterprises make the decision about transnational M&A. A single productivity heterogeneity is not the only explanatory variable, and after joining the other variables such as enterprise scales, they can explain the enterprises’transnational M&A choice. In addition, different heterogeneous factors have different influences (direction and extent) on the transnational M&A choice of secondary manufacturing industries. After concrete analysis and explanation about the above results, some opinions and suggestions are put forward, including how to strengthen Chinese heterogeneity influence factors, how to promote scientifically transnational M&A strategy decision, and what kind of relevant policies should the government formulate.