An Empirical Study Of The Differences In National Cultural Characteristics Affec Ting Chinese Enterprises' Overseas M&A Performance

Since the 21st century,the pace of overseas mergers and acquisitions by Chinese companies has become faster and faster.While M&A transactions have continued to grow,the success rate of Chinese companies' overseas mergers and acquisitions has been declining,and the performance of M&A has not been satisfactory.For this phenomenon,relevant research has gradually increased in recent years.Scholars have tried to explain from the aspects of financial factors and institutional factors,and scholars have studied from the perspective of cultural differences.Based on the path of cultural differences research,this paper further expands the cultural differences into six-dimensional variables of national cultural characteristics differences,namely power distance differences,individualism differences,masculinity differences,uncertainty avoidance differences and long-term orientation differences.Through the multi-dimensional measurement of the differences in national cultural distances and the control of other influencing factors,and collecting samples of 64 overseas mergers and acquisitions of Chinese enterprises between 2000 and 2014,this paper examines the national culture by using the national cultural characteristics database established by Hofstede.The six-dimensional variables of the difference in characteristics of the company's performance in the first,second and third years after the merger,the study found that only in the third year after the merger,the national cultural characteristics of the difference is most significant.The specific performance is as follows:In the third year after the merger,each additional unit of power distance difference,uncertainty avoidance difference and long-term orientation difference will reduce the M&A performance by 0.5%,0.5%and 0.3%respectively.In addition,industry relevance has a significant negative modulatory effect on the relationship between national cultural characteristics and cross-border M&A performance.When M&A companies are enterprises in the same industry,each additional unit of power distance difference,uncertainty avoidance difference and long-term orientation difference will reduce the M&A performance by 0.6%,0.6%and 0.4%respectively.In general,firstly,in the short term,the influence of national cultural characteristics difference is not significant,but with the deepening of the M&A integration,it will be more apparent.Secondly,the greater the difference in cultural characteristics between countries,the greater the negative impact on cross-border M&A performance.Thirdly,when target companies are companies in the same industry,the negative effects of cultural differences between countries will be magnified.