Research On The Cross-border Mergers And Acquisitions Of Chinese Enterprises In2004-2012

This article selected overseas acquisitions as the research object, it is one of the important ways of going abroad, from overseas mergers and acquisitions practice, we can find that the institutional factors led to failure of overseas M&A to a large extent, such as the nature of state-owned enterprise, the protection of the important industry and so on, so this article investigating how institutional factors and geographical distance influence internationalization process of Chinese enterprises, including direct impact and indirect impact. The indirect impact refers to the regulatory role of institutional factors.From theoretical framework of strategic three pillar, and combining with the typical cases of Chinese enterprises’transnational M&A to analyze the factors that influencing Chinese enterprises going aboard, hope to find the institutional factors. Then analyze the factors in theory and put forward the assumptions. And further using the LOGIT regression model to do empirical study, including nine hundred and two cases of Chinese overseas acquisitions from2004to2012, Choosing the variables of characteristics of the enterprise, industrial protection, and geographical distance to be the explanatory variable, choosing acquisition of scale, industry matching as control variable and add an interactive variable into the model, in order to analyze the regulating effect.The empirical results get the following conclusions:First, if the acquired company is a state-owned enterprise, then the likelihood of success of overseas acquisitions will be small; Second, if the mergers and acquisitions industry belongs to sensitive industry, then it will have smaller success rate; Third, the host country’s industry protection has some negative effects to the success of M&A, and if the enterprise has a state-owned background, this impediment will be more obvious. Fourth, if the target company and the acquirer belong to the same industry, the success rate will be higher. Fifth, if the proportion of the acquisition is larger, then the likelihood of success will be smaller. According to empirical results, the variable of geographical distance doesn’t significant, and indicates that the distance between the two countries don’t have significant impact on the success of overseas acquisitions.Finally, this paper also proposed some measures to promote Chinese enterprises going aboard based on empirical results, such as to take efforts to increase policy support of private enterprises, speeding up the privatization of state-owned enterprises, the Chinese enterprises going aboard collectively and so on.Previous scholars do this research mainly based on the theoretical study, very little empirical research, this article selects the different dimensions of the institutional factors and combines with other factors to do the research, and add an interactive variable into the model to analyze the regulating effect of the variable characteristics of the enterprise. This article combines the method of theoretical study, empirical research and case studies to analyze, so it is more comprehensive and systematic, making up for the gaps in the field of overseas M&A.