Research On The Influence Of Cultural Distance And M&A Experience On Cross-border M&A Performance

In recent years,with the continuous strengthening of China's economic strength,the pace of Chinese companies' "going global" has accelerated significantly.After the 2008 financial crisis,many high-quality foreign companies' assets have shrunk,and the economic recovery in Europe and America has been slow.Chinese companies' crossborder mergers and acquisitions have sprung up in the post-financial crisis era.In addition,Chinese manufacturing enterprises are still in the middle and lower reaches in the international division of labor.Cross-border mergers and acquisitions have also brought opportunities for industrial upgrading.Through cross-border mergers and acquisitions,manufacturing companies have the opportunity to contact or obtain advanced foreign technology,thereby improving China's manufacturing capacity is lagging.However,in cross-border mergers and acquisitions,due to the risks of crossborder mergers and acquisitions and corporate strength issues,the performance of cross-border mergers and acquisitions varies among companies.Under the above background,this article studies the performance of Chinese manufacturing cross-border mergers and acquisitions through literature analysis,factor analysis,and empirical analysis.This paper uses Wind China's M&A database and Private Equity Database(Zingke)to count 162 Chinese manufacturing cross-border mergers and acquisitions from 2008 to 2015,and collects corporate financial indicators through Guotai'an database and Wind database,and uses factors in accounting analysis.The analysis method calculates the M&A performance scores of multinational M&A companies over 5 years.In addition,this paper also established a multivariate linear regression model by sorting out the classic theory of influencing factors of cross-border mergers and acquisitions,selecting influencing factor indicators suitable for the characteristics of the sample.Through empirical analysis,this article draws the following conclusions: Crossborder mergers and acquisitions by manufacturing companies have failed to improve performance.In terms of short-term performance,cross-border mergers and acquisitions have severely reduced the company's corporate performance in the year of the merger.In the long run,corporate performance began to recover after one year of mergers and acquisitions,and by the third year,more than half of the companies began to achieve positive performance improvements.However,the performance rebounded during the recovery period is far from offsetting the loss of corporate performance in the year of the merger.In the study of the influencing factors of M & A performance,it is found that the cultural distance increases,the size of the acquirer's enterprise,the acquisition equity ratio and the M&A performance show a significant positive correlation,and the size of the M&A transaction shows a significant negative correlation.Secondly,this paper finds that with the improvement of merger and acquisition experience,the increase of cultural distance on the performance of crossborder merger and acquisition performance has a U-shaped effect of rising first and then decreasing,which also validates the theory of empirical theory in organizational learning theory.Finally,when studying the dual moderators,this paper finds that if the company is a state-owned company or the larger the company,the U-shaped relationship between the increase in cultural distance and the performance of crossborder mergers and acquisitions will weaken.