The Impact Of Regulatory Regime And Normative System On The Performance Of Cross-border Mergers And Acquisitions Of Chinese Enterprises

This paper studies the impact of institutional distance on the performance of CBM&A by Chinese enterprises.First,this paper reviews the literature on CBM&A and institutional theory.Secondly,the paper analyzes the institutional factors affecting crossborder mergers and acquisitions,and points out the problems caused by institutional factors.In addition,under the framework of regulatory regime and normative system,the relevant policies of major global M&A countries are collected.Then,based on the maneuverability of empirical analysis and the availability of data,this paper selects 145 CBM&As in 2012-2016 as sample.Taking ROA as the explanatory variable,six dimensions of regulatory regime and normative system are selected as explanatory variables: Government Effectiveness,Regulatory Quality,Rule of Law,Control of Corruption,Political Stability,Voice and Accountability.At the same time,the characteristics of the target country,other relevant distances between the two countries and other factors are controlled,and a multiple regression model is established for empirical test.Through theoretical analysis and empirical research,it is found that when the regulatory regime and normative system of the target country lag behind China,it is conducive to increasing M&A performance.Finally,according to the conclusion of the study,the paper gives relevant policy recommendations.The innovation of this paper is to elaborate the impact of institutional distance on CBM&A,and to sort out the regulatory regime and normative system of CBM&A in the major countries of the world.Besides,in the selection of explanatory variables in empirical research,dividing the regulative institutional distance and normative institutional distance into six dimensions.And in the study,the institutional distance is regarded as a directional concept.Finally,this paper provides reference for Chinese enterprises to choose the institutional environment of the target countries.