A Study On The Mechanism And Effect Of Foreign Capital M & A On The Total Factor Productivity Of Target Enterprises

From the period of reform and opening up to the beginning of this century,foreign investment in China has basically all taken the greenfield investment approach.However,with the continuous development of the domestic economy,the improvement of the investment environment and the promulgation of relevant laws over the past decade or so,Foreign investment mergers and acquisitions with a smaller proportion of investment are rapidly increasing both in amount and in amount.In foreign mergers and acquisitions,the domestic enterprises are willing to transfer their shares to foreign enterprises primarily for the purpose of acquiring high-tech production technology and business philosophy so as to raise their overall productivity.So,foreign mergers and acquisitions really improve the productivity of mergers and acquisitions it? This requires empirical analysis to answer.This article analyzes the impact of foreign M & A activities on target enterprises from the perspective of total factor productivity and puts forward relevant countermeasures and suggestions.In the first part,this paper analyzes the influence mechanism of FDI M & A on the TFP of the target enterprises from four aspects: technological progress,resource allocation,economies of scale and system changes.Then we select the foreign-funded mergers and acquisitions of A-share listed companies in our country as samples for empirical research.The empirical research is divided into four steps.The methods and results of the four steps are as follows: The first step is to use DEA-Malmquist index to calculate M & A activity And the Malmquist index of all target companies after the merger and acquisition activity are obtained,and the total factor productivity of the target companies before and after the mergers and acquisitions is obtained.The total factor productivity of target companies after M & A is improved,which shows that foreign M & A can improve the target enterprises as a whole Total factor productivity.After factoring TFP into two indexes,technological progress and technical efficiency,we find that the contribution of technological progress to the improvement of total factor productivity dominates.The second step is to use DEA-Malmquist index method to calculate the change of total factor productivity of target industries in the same period.It is found that the difference of total factor productivity of target enterprises before and after mergers and acquisitions is greater than the difference of total factor productivity in the same industry.This shows that foreign M & A generally improves the total factor productivity of target enterprises.The third step is to divide the target companies into two comparative groups based on the differences in the ownership of the target companies according to the source and the source of the host companies,and analyze the changes of the TFPs of the target companies before and after the mergers and acquisitions.The results show that M & As from the main Asian countries are better than the main M & A mergers and acquisitions from the European Union and the United States.M & As of the target enterprises are the M & As of the state-owned enterprises,the total factor productivity increase is higher The target company is a non-state-owned mergers and acquisitions.The fourth step is the empirical analysis of the factors influencing the total factor productivity improvement of M & A in foreign countries by using multiple regression analysis.The results show that the ratio of asset-liability ratio,undistributed profit per share,return on assets,technical staff,As well as the shareholding ratio of foreign-funded enterprises after the mergers and acquisitions have a positive correlation with the difference between the total factor productivity of the target enterprises and the technology progress index before and after mergers and acquisitions;the ratio of assets and liabilities,the undistributed profits per share and the proportion of technicians are all related to the target enterprises The technical efficiency index showed a positive correlation before and after the difference,the return on assets and technical efficiency before and after the difference showed a negative correlation.The main innovations of this paper lie in:(1)The existing literature generally evaluates the effect of M & A on the basis of financial indicators.This paper evaluates the effect of foreign M & A activities through the change of total factor productivity of target firms before and after M & A,Comprehensive and comprehensive.(2)This paper empirically analyzes the impact of M & A on the total factor productivity of the target firms,comparing not only the TFP of the target firms before and after M & A,but also the change of sample firms before and after mergers and acquisitions with the change of the same industry Analysis,making the evaluation more scientific and credible.(3)This paper systematically analyzes which characteristics of the target enterprise and the main party will affect the total factor productivity improvement effect of foreign M & A.