Financial Performance And Influencing Factors Of Cross-border M&A In The B&R Countries

The "Belt and Road" Initiative(B&R)strategy,as a major layout in the field of international economic cooperation for the future development of China,has a direct effect on the investment behavior of microeconomic subjects.Cross-border M&A is an important way for Chinese enterprises to carry out FDI in the B&R countries.Therefore,the performance of cross-border M&A along B&R has become a topic of common concern in theory and practice.This paper focuses on the cross-border M&A financial performance of Chinese enterprises in B&R countries.As the basic component of M&A strategy,financial performance is the most direct embodiment of enterprise investment efficiency and it has the leading signal value to M&A market.To describe the change law of financial performance and its influencing factors is the main task of this paper.Based on the systematic analysis of Chinese B&R investment development,this paper analyzes 39 cross-border M&A events of the main board listed companies from 2010 to June 2015.In order to reveal the determinants of financial performance after cross-border M&A,it takes two steps to carry out the analysis.The first step is using 12 financial indicators and factor analysis method to depict financial performance and form the concept of "comprehensive financial performance".The analysis shows that the comprehensive financial performance of the sample enterprises fluctuated during the year of M&A and the first year,then entered the rising channel in the second year.The second step is to deconstruct the influencing factors of the comprehensive financial performance of cross-border M&A.According to the availability of the data,30 merger events between 2014 and June 2015 were selected as samples.Multiple regression method is used to carry out empirical tests on 9 factors.Further analysis shows that M&A scale and financial support have significant positive impacts on the financial performance improvement in the second year after M&A.However,the influence coefficient of the economic development level of the host country and enterprise growth rate are contrary to the expectation.The other five variables have no significant impact.This result reflects the characteristics of cross-border M&A performance in the initial stage,which reflects the restriction of the economic and social particularities of the B&R countries.At the same time,it also has some reference value for Chinese enterprises to make cross-border M&A choices and for government to make related policies.This paper puts forward relevant countermeasures and suggestions accordingly.