The Influence Of Political Relevance On International Mergers And Acquisitions Performance ——Empirical Research Of Chinese Listed Companies

With the formation of trend of global trade integration and the‘Going Out’strategy being put forward,China occupies an increasingly important seat in the world trade.China’s multinational companies always go abroad to carry out cross-border mergers and acquisitions（M＆A）and seek resource accumulation and market expansion.Many well-known international companies were injected into China’s ’blood’.Due to the history of the planned economic system,the phenomenon of political relevance of Chinese enterprises is very common.In the context of cross-border M＆A,political relevance’s information effects,resource effects and crisis relief advantages make up for the political relevant companies’outsider disadvantage in host countries,so improves international M＆A performance.From the perspective of political relevance theory and outsider disadvantage theory,this paper analyzed the impact of political relevance on international M＆A performance.Firstly,based on the relevant theories,this paper analyzed the mechanism of the influence of political relevance on the performance of international M＆A.Political relevance passes out a good performance,high technical level,right of management of a special industry,industry recognition and other information of multinational companies,provides financing facilities,tax incentives,simple listing procedures,crisis relief and other conditions for multinational companies,which has positive effect on international M＆A performance.Secondly,this paper also analyzed the regulatory role of organizational redundancy,property rights and institutional quality on the relationship between political relevance and international M＆A performance,and established the theoretical model of the influence of political relevance on international M＆A performance.Thirdly,based on the sample of 117 cross-border M＆A cases of Chinese enterprises in 2008-2013,the variables in the model were defined and measured,and stepwise regression analysis of the sample data was performed.Finally,the empirical test results were analyzed and the conclusions were drawn.The countermeasures and suggestions were put forward to play the advantages of political relevance.The empirical results show that political relevance has a positive impact on the performance of international M＆A.And organizational redundancy,as a buffer resource,its decentralization and buffering mechanism can improve the objectivity of enterprise decision-making,make the enterprises get rid of tangible and intangible resources,and weaken the effect of political relevance on the performance of international M＆A.While the moderating effects of institutional quality and property rights on the relationship between the two have not been tested.Therefore,multinational companies should actively establish the political relevance with the government to offset the negative impact of outsider disadvantage through the resource effect,information effect and characteristics of resisting the political risk of political relevance.The enterprise lack of political relevance can give full play to the buffer role of organizational redundancy to solve the problems encountered in the process of enterprise development.