An Empirical Study Of The Impact Of TMT's Acquisition Experience On Firm's Cross-border Acquisition Behavior And Performance

In 2001,China joined the WTO and then companies' cross-border investment activities are gradually increasing.More and more Chinese companies are conducting cross-border acquisitions in order to achieve long-term development.Top management team(TMT)is the policymakers and practitioners in cross-border acquisitions.How the TMT acquisition experience affect the acquisition behavior and whether companies can reach the acquisition target are getting more and more attention.This paper focuses on the relationship between the TMT acquisition experience and the frequency of companies' cross-border acquisitions,and the relationship between the TMT acquisition experience and the companies' cross-border acquisition performance.The first part introduces the research background and research methods.The second part reviews the current research on the acquisition experience,team faultlines and TMT's pay dispersion.This part also summarises the relationship between the TMT acquisition experience and the frequency and performance of companies' cross-border acquisition.The third part focuses on hypotheses and setts up the frame of this paper based on the existing research and the hypotheses.The fourth part is focusing on the samples,measurement and the analysis methods in this article.The fifth part test each hypothesis empirically and presents the sample characteristics and the empirical results.The last part is the conclusion of this paper.The main conclusions of this paper are as follows.First of all,the TMT's acquisition experience holds a positive correlation with companies' cross-border acquisitions frequency and performance.Second,team faultlines negatively moderate the relationship between the TMT's experience and the frequency of companies' cross-border acquisitions,and positively moderate the relationship between the TMT's experience and the companies' cross-border acquisition performance.Third,the TMT's vertical pay dispersion has a positive moderate role on the relationship between the and the companies' cross-border acquisition performance.The innovation of this paper includes:(1)Different from most of the literature on the companies acquisition experience,this paper emphasizes the importance of TMT acquisition experience,and study the impact of TMT acquisition experience on cross-border acquisition behavior and performance;(2)This paper proposes and verifies the different moderate effect of TMT faultline on both sides.We put forward new insights and enrich the extant research on team faultline;(3)Last,we use thenewly average silhouette width(ASW)approach to measure the team faultline,which increase the reliability and validity of the measurement.All in all,this paper is of great significance for the establishment of TMT and the Chinese companies' cross-border acquisitions.