Study On The Performance Of Cross-border M&A Of China's Commercial Bank

The world has entered a new era of economic integration and financial globalization.In this highly competitive and survival of the fittest,traditional commercial banks will face more and more challenges from the outside world.If China ' s commercial banks want to remain invincible under the impact of globalization,they must learn from other countries' experiences,open up bigger markets,increase their own competitiveness,and develop in the direction of international large banks.After years of exploration,the international banking industry has discovered that cross-border mergers and acquisitions are the product of economic globalization and financial liberalization.It is also the most convenient way to quickly enter the international market and achieve international operations.With the extension of reform and opening up to deeper areas,China's financial industry has continuously deepened its degree of opening to the outside world,and even began to try mixed business models(such as the recent merger of China Banking Regulatory Commission and China Insurance Regulatory Commission).This has led to the gradual expansion of the number and scale of cross-border mergers and acquisitions of commercial banks in China.However,cross-border mergers and acquisitions can be determined as commercial banks envisage,can expand the market,learn from other countries' excellent management experience and advanced technology,and ultimately enhance their overall competitiveness.If you can improve the performance of commercial banks,then what are the influencing factors,how these factors affect,how can we rationally use these factors to improve performance in order to achieve the desired purpose,these are issues that need to be solved.Based on these questions,this paper selects cases of cross-border mergers and acquisitions of Chinese commercial banks that have research value as samples to study whether their performance is improved or not,and further analyzes the performance of their classified samples,and studies the influencing factors.Through these studies,it has certain reference significance for China's commercial banks' future overseas investment and cross-border mergers and acquisitions.This paper first reviews the theoretical basis and literature review of cross-border mergers and acquisitions by domestic and foreign commercial banks.Secondly,the article sorts out the development history of cross-border mergers and acquisitions of commercial banks in China,and summarizes the characteristics of its development on the basis of analysis.Through these sorts of combing,we have a certain understanding of the course of cross-border mergers and acquisitions of China's commercial banks,so as to select a reasonable period of time for research.The fourth chapter of this article is the empirical part.The sample selection phase is from January 1,2006 to December 31,2014.Factor analysis was used to determine the sample of cross-border mergers and acquisitions during the period prior to the acquisition,the year of merger and acquisition,and after acquisition.In the three years of performance changes,through comparative analysis of the performance values of each period,the following conclusions have been drawn: In the first three years,the performance of commercial banks adopting mergers and acquisitions has been on an upward trend;the performance in the year of M&A and the first year after M & A has risen slowly,changing the previous growth trend;the end of mergers and acquisitions The performance of the second year quickly increased,rising faster than before the merger.It shows that cross-border mergers and acquisitions have a certain role in promoting the performance of commercial banks,but there is a certain time lag in the improvement of performance,and the results obtained through the independent sample T test.Again,analyze the subsamples of the results and study the effects of the nature of the acquirer,the area where the acquirer is located,and the size of the equity held by the acquirer on the performance of the bank.The increase in the performance of state-owned commercial banks was found to be better than that of joint-stock commercial banks;the performance of mergers and acquisitions in non-Hong Kong and Macau regions was better than that in Hong Kong and Macau;holding less than 50% and more than 50% of the equity of the acquired acquirer had no significant effect on the performance of commercial banks.Finally,based on the empirical results and related issues,this paper puts forward reasonable policy recommendations before the M&A,during the M&A and after M&A.