Study On The Impact Of Overseas Mergers And Acquisitions On Enterprise Business Risks

With the increasing comprehensive strength of national economy and opening up to the outside world,more and more Chinese enterprises are incorporating internationalization into their development strategies,striving to develop overseas markets and enhancing their core competitiveness.Overseas M&A is an effective way for enterprises to achieve international expansion.Through overseas M&A,enterprises can quickly acquire key strategic assets such as professional knowledge,superior brands and core technologies,and develop overseas markets and sales channels,thus forming international competitive advantages.At the same time,overseas M&A is also a highly complex foreign investment activity,which may bring more challenges and risks of M&A failure to enterprises.However,studies on overseas M&As of Chinese enterprises have mainly focused on the motivation and performance of M&As,but the changes in business risks brought about by overseas M&As have not attracted sufficient attention.The study of the impact of overseas M&A on enterprise business risks is helpful to supplement the research on overseas M&A enterprises and provide useful references for enterprises to further implement the "going out" strategy.First,this thesis theoretically analyzes the impact of overseas M&A on corporate business risk and proposes a research hypothesis;then,it summarizes and analyzes the current situation of overseas M&A activities of Chinese companies in the context of the development history,motivation and characteristics of overseas M&A;at the same time,it studies the types of business risks and causes of business risks faced by companies in the process of overseas M&A;in terms of empirical research,the overseas M&A activities of Chinese listed companies in Shanghai and Shenzhen from 2010 to 2019 are selected as the research sample;for the empirical study,the overseas M&As of Chinese A-share listed enterprises in Shanghai and Shenzhen from2010 to 2019 are selected as the research sample,and the PSM-DID model is constructed to empirically examine the impact of overseas M&As on the business risks of enterprises,and to test whether there are differences in the impact of business risks on enterprises of different ownership systems in groups.The results of the study show that the target industries and destinations of overseas M&As of Chinese enterprises are broad in scope but highly concentrated;overseas M&As can significantly reduce the business risks of companies,and this reduction persists for 2 years after the occurrence of the M&As;compared with state-owned enterprises,the effect of overseas M&A on business risk reduction is more significant in private enterprises.Finally,this thesis argues that successful overseas M&A requires not only the active role of enterprises,but also governmental departments to provide appropriate support policies and strengthen supervision and guidance functions.Corporate managers should pay attention to the investigation and preparation before overseas M&A,strengthen the management of resource integration after overseas M&A,and avoid the short-sighted behavior of blind international expansion.The government should promote the globalization strategy layout of financial institutions,establish information disclosure websites and risk warning systems,and also continuously improve the regulatory system to provide reliable assistance to enterprises’ overseas M&A.