Research On The Performance Of Cross-border M&A In China's Electronic Communications Industry Under The Background Of Global Economic Slowdown

After the 2008 financial crisis,the global economy has been in a state of low-speed growth,the global economy has slowed down significantly.In this macroeconomic environment,the overall cross-border mergers and acquisitions of Chinese enterprises have shown rapid growth,especially in the electronic communication industry.The scale of its mergers and acquisitions has been at the forefront of the industry since 2013.However,due to factors such as geopolitics and trade disputes,companies in China's electronic communications industry have been severely suppressed by the U.S.government since 2018,and other western countries' merger and acquisition reviews for related companies have gradually become stricter.Obviously,overseas governments want to suppress the development of China's electronic communications industry in various ways.However,the development of electronic communication technology is related to whether China can further grasp the dominance and right of speech in the world's electronic communication technology in the future,and the electronic communication industry has therefore become the focus of attention.In this context,this article will analyze the performance of cross-border mergers and acquisitions in China's electronic communications industry in order to clarify its overall performance and related influencing factors,and put forward suggestions on how the companies can participate in cross-border mergers and acquisitions better and improve the performance of mergers and acquisitions.This article conducts research by combing the literature and theories and testing them empirically.Firstly,it elaborates the related factors and theoretical basis of Chinese enterprises' participation in cross-border M&A and M&A performance in the global economic slowdown,and then analyzes the current development status of China's electronic communication industry and the performance evaluation status,and next conducts theoretical and logical combing on this basis.In the empirical analysis,the cross-border mergers and acquisitions of enterprises in the electronic communications industry from 2013 to 2017 were selected as samples,and a performance indicator evaluation system including 10 variables was constructed based on the views of scholars.Then,the BCC model and the Malmquist index were used to evaluate the performance of cross-border mergers and acquisitions from multiple perspectives.The empirical results of this paper show that: First,the overall performance of cross-border mergers and acquisitions in China's electronic communication industry is good.The larger the size of the company,the better the performance of mergers and acquisitions.The amount of mergers and acquisitions has no significant effect on the performance of mergers and acquisitions,but the proportion of mergers and acquisitions will have an impact.Second,the main reason for the poor performance of a small number of companies in cross-border mergers and acquisitions is the lack of business resource integration and operational management capabilities after mergers and acquisitions,and most companies have achieved economies of scale through cross-border mergers and acquisitions.Third,the performance of cross-border mergers and acquisitions in China's electronic communications industry has shown an upward trend and then a downward trend.The overall technological level of various enterprises in the industry is lagging behind,which has led to the low total factor productivity of most enterprises.Based on the results of empirical analysis,this article puts forward countermeasures and suggestions for the effective participation of Chinese electronic communication enterprises in cross-border mergers and acquisitions.Companies need to make improvements in five aspects: expanding the scale,strengthening the review of merger plans,paying attention to internal R&D investment,strengthening legal risk prevention,and optimizing the location of cross-border mergers and acquisitions.