The Research On The Performance And Determinants Of The Cross-border Merger And Acquisition Of The Listed Companies In China

Chinese enterprises have a total of two wave of cross-border mergers and acquisitions.In the year of 1999,the Chinese government implemented the "going out" strategy,Chinese enterprises set off the first wave of cross-border mergers and acquisitions;In the year of 2008,foreign assets have shrunk dramatically because of the global financial crisis,Chinese companies set off the second wave of cross-border mergers and acquisitions.The second wave of cross-border mergers and acquisitions set by Chinese enterprises has shown a remarkable feature:the frequency of cross-border mergers and acquisitions of private enterprises is getting faster and faster;the amount of transactions is getting bigger and bigger;the location selection is more and more concentrated;the way of M&A is becoming more and more diversified;the motivation of M&A becoming more and more complex.This paper mainly studies the performance of cross-border M&A of Chinese enterprises from two aspects.Firstly,short-term performance,long-term performance and M&A efficiency of cross-border M&A of Chinese enterprises are obtained by using short-term event research method,comprehensive financial index method and data envelopment analysis method.Secondly,the paper establishes the multiple linear regression model to study the key factors which have significant influences on the long-term performance of Chinese enterprises' cross-border mergers and acquisitions.About the evaluation of cross-border M&A performance,this paper draws the following conclusions:First,around the announcement date of cross-border M&A,the cross-border M&A activity of Chinese enterprises can create wealth for shareholders.Therefore,this paper argues that cross-border M&A activities carried out by Chinese enterprises can be accepted and recognized by the capital market.Second,during the two years after M&A.Thirdly,cross-border mergers and acquisitions have no significant impact on the productivity of Chinese enterprises during the two years after M&A.About the empirical analysis of the factors influencing the performance of cross-border M&A,this paper draws the following conclusions:First,in the early stage of M&A,the cultural differences,energy and resources industries,scale of assets,size of acquirer have a negative impact on the performance of M&A,but all of them have a positive impact on the performance of cross-border M&A in the long term.Second,the performance of M&A of state-owned enterprises is better than that of non-state enterprises.Third,the better the performance of acquirer before the M&A,the managers are more likely to produce"arrogant" emotions.On the basis of the theory and empirical analysis,this article put forward the suggestions to improve Chinese enterprises cross-border M&A performance from the government level and enterprise level.This paper argues that the Chinese government should do something from three aspects:First,provide financial services for enterprise cross-border merger and acquisition;Second,actively promote private enterprises cross-border M&A,make it become the mainstay of Chinese cross-border M&A;Third,actively promote bilateral investment agreements.Chinese enterprises should begin from the following three aspects:first,strengthen the M&A cultural integration,make the enterprise benefits from cultural differences;Second,to improve its strength and management ability;Third,choose the appropriate target enterprise.