Factors Of Zhejiang And Guangdong Cross-border M&A Location Choice: Institution, Cultural, Efficiency And Innovation

In recent years,cross-border M&A has gradually become the main form of China's foreign direct investment.Especially in the internationalization of enterprises and transformation and upgrading applications more widely.From the perspective of resource dependence theory,enterprises in order to maintain a sustainable competitive advantage,the need for external integration of quality resources.However,there are differences in institutional,cultural,efficiency and innovation among different host countries,which brings challenges for enterprises to obtain resources.In the cross-border M&A of China's enterprises,Zhejiang and Guangdong are the two most representative provinces.Therefore,this paper takes Zhejiang and Guangdong provinces as the research object.This paper reviews the theory of typical cross-border M&A-related.Previous studies on cross-border M&A area selection of literature and the results were classified on the basis of proposed research questions.Secondly,access to research data from Zephyr,World Economic Forum and other databases.In the Zephyr and Thomson One database were screened out of Zhejiang and Guangdong 2005--2015 years from 610(245 from Zhejiang,Guangdong,365 cases)cross-border mergers and acquisitions completed events.Then different databases to collect data match,followed by Stata software to do clogit return.From the macro and micro levels to discuss the factors affecting cross-border M&A business location choice.The macroscopic factors used in the empirical analysis are: institutional distance,cultural distance,host country's national efficiency and national innovation ability.The micro factors used are the innovation ability and diversification of the enterprise.Through the theoretical analysis and empirical test,this paper has the following conclusions.First,the enterprises in Zhejiang and Guangdong tend to choose M&A with good macroeconomic conditions,large market size,and geographical location closer to China.Second,the cross-border M&A of Zhejiang enterprises is more likely to choose the system distance and the smaller country,the larger cultural distance and the larger country,and Guangdong enterprises are more inclined to choose the system distance and larger,cultural distance and our smaller country / region.Third,Zhejiang and Guangdong enterprises tend to choose cross-border mergers and acquisitions of national capacity to enhance the ability of strong,strong national innovation ability of the country / region.Fourth,for Zhejiang,the enterprise innovation ability can enhance the system distance,the national innovation ability and the location choice relations,but the cultural distance,the efficiency promotion ability and the location choice relations does not have the adjustment function.Corporate diversification can weaken the negative relationship between institutional distance and location choice.Fifth,for Guangdong,the enterprise innovation ability can negatively regulate the system distance,the efficiency promotion ability,the national innovation ability and the location choice positive relations,does not have the adjustment function to the cultural distance and the location choice relations.The degree of enterprise diversification can enhance the positive relationship between institutional distance,efficiency promotion capacity and location choice,and does not regulate the relationship between cultural distance,national innovation ability and location choice.In general,the results of this study show that Zhejiang enterprises and Guangdong enterprises in the choice of location of cross-border M&A,the host country system factors and cultural factors attach great importance to the situation in the host country to enhance the capacity and national innovation capacity factors attach importance to the situation More consistent.The results provide empirical evidence for the strategic layout and location selection of cross-border M&A in Zhejiang and Guangdong provinces,and clarify the similarities and differences between cross-border M&A in Zhejiang and Guangdong provinces,and to a certain extent,improve the selection of transnational M&A.