The Empirical Research On The Impact Of "One Belt,One Road" Initiative On Overseas M&A Of China’s Listed Firms

At the end of 2013,Chairman Xi Jinping successively proposed the cooperation initiatives of the "New Silk Road Economic Belt" and "21st Century Maritime Silk Road" after he had gone out to visit.Later the initiatives have been refined into the"The Belt and Road" initiative.This indicates that China’s opening to the outside world has begun to take the globalization trend as a precondition,and the "global strategy"for economic development has taken shape.The "One Belt,One Road" is a common cause of all countries along the route and promotes the establishment of a new pattern of regional economic cooperation.The proposed initiative will bring new opportunities for Chinese enterprises ’ outward direct investment,and overseas mergers and acquisitions of enterprises will also usher in a new phase.Therefore,it is very important to analyze how this major event of the "One Belt and One Road" initiative will impact on the overseas mergers and acquisitions of Chinese companies.The current researches mostly focus on the theoretical level to explore the opportunities and risks faced by overseas mergers and acquisitions by Chinese companies in the "One Belt and One Road" context.There are not many empirical studies.This paper aims at the number and amount of overseas mergers and acquisitions,the long-term and short-term performance after mergers and acquisitions,and studies the role and impact of the "One Belt and One Road" initiative on these aspects.Further discuss the influence of the type of M&A entities,cultural distance of host countries and diplomatic relations on the above-mentioned role.This article takes the overseas acquisitions of Chinese listed companies from 2005 to 2017 as the research object.Firstly,the OLS regression model is used to analyze the quantity and amount of overseas mergers and acquisitions.The results show that after the "Belt and Road" initiative was proposed,it was compared to non-" In the "One Belt One Road" state mergers and acquisitions,the number and amount of overseas mergers and acquisitions completed by Chinese companies along the "One Belt and One Road"countries have grown faster.This effect is even more pronounced when the acquirer is a state enterprise,the cultural differences between the two countries are relatively small,or the diplomatic relations have been enhanced.Then,after researching the performance changes after mergers and acquisitions,the results show that the "One Belt and One Road" initiative has a significant effect on the long-term performance of overseas acquisitions by Chinese companies in countries along the "One Belt and One Road" as compared to mergers and acquisitions with non-"Belt and Road" countries.The positive effect is more significant when mergers and acquisitions are non-state-owned enterprises,the cultural differences between the two countries are relatively small,or the diplomatic relations have improved.This paper conducts empirical research on the path and performance of Chinese companies’ overseas M&A under the "One Belt and One Road" initiative.At the corporate level,it reveals the practical significance of China’s opening to the outside world in the context of the "One Belt and One Road" initiative.The research conclusion is that the "One Belt and One Road" initiative has a certain role in promoting the overseas mergers and acquisitions of Chinese enterprises,and has positive reference significance for the implementation of policies and the overseas acquisition strategy of enterprises.