The Influence Of Top Management Team Heterogeneity On Cross-border M&A Performance

Scholars and businessmen have increasingly paid attention to digging out the myth of the M&A performance of Chinese A-share listed companies.Current studies focus on institutional factors,political connections,payment methods,etc.,however,few studies have been conducted from the perspective of top management team(TMT).The different personality traits of executives,including gender,age,education level and overseas experience can have a significant influence on companies' risk identification,decision making and strategic advancement,which,in turn,affect the cross-border M&A performance.Based on Upper Echelons Theory,this paper incorporates demographic characteristics as instrumental variable for psychological characteristics of top management team into the study of TMT heterogeneity and cross-border M&A performance,taking cross-border mergers and acquisitions of Chinese A-share listed companies from 2014 to 2019 as sample.Using Cumulative Abnormal Return(CAR)and Return on Equity(ROE)to define short-term and long-term M&A performance respectively and Blau index to define TMT heterogeneity,this paper runs the regression analysis to dig out the relationship of TMT heterogeneity and cross-border M&A performance.The regression results show that cross-border M&A performance has a positive correlation with gender heterogeneity and overseas experience heterogeneity of top management team.In addition,sample companies are grouped according to enterprise property ownership to test the influence of TMT heterogeneity on M&A performance in state-owned enterprises and non-stateowned enterprises respectively.Interaction terms are added to test the moderating role of managerial ownership.The empirical results show that enterprise property ownership and managerial ownership play a moderating role on the relationship of top management team heterogeneity and cross-border M&A performance.Gender heterogeneity and overseas experience heterogeneity of top management team in non-state-owned enterprises have a greater impact on cross-border M&A performance.Besides,with managerial ownership,gender heterogeneity and overseas experience heterogeneity have a stronger positive effect on corporate M&A performance.