Research On The Influencing Factors Of Financial Risk In Cross-border M&A Of Listed Companies

M&A is an important means for enterprises to quickly enter new markets and enhance their core competitiveness.Under the background of the development of economic globalization and China’s continuous introduction of enterprise internationalization development policies,more and more Chinese enterprises have joined the ranks of cross-border M&A.Cross-border M&A transactions are cumbersome and complex,and each decision in the process of M&A may bring different degrees of risk to the enterprise,and these risks will be reflected in the financial status of the enterprise in the form of financial risks.The lack of experience in cross-border M&A and awareness of risk prevention in Chinese enterprises have led to the unoptimistic success rate of M&A.Therefore,it is of great significance to study the influencing factors of financial risk in cross-border M&A.At present,the scale and number of cross-border M&A transactions are constantly expanding,but the benefits of M&A are difficult to achieve the expected results.This paper selects 89 A-share listed companies that have cross-border M&A transactions in China from 2014 to 2018 as the research objects,and uses the methods of literature research and empirical research to explore the influencing factors of corporate cross-border financial risks.Firstly,this paper qualitatively analyzes the sources of financial risk in cross-border M&A from the four links of pricing,financing,payment and integration,and constructs an index evaluation system for the influencing factors of financial risk in cross-border M&A.Secondly,explain the relevant variables,determine the financial risk of the enterprise as the explained variable,and use the Z-value model to measure it.Simplify the 9 financial indicators in the indicator evaluation system through factor analysis,and extract the payment factor,integration factor,and financing factor as the explanatory variable.On this basis,put forward the research hypothesis and construct the regression model.Considering the lag of M&A benefits,this paper selects the data of one year after M&A for regression analysis.The regression results show that cash payment and financial integration can significantly reduce the financial risk of enterprises,verifying H1 and H2respectively;equity financing can reduce the financial risk of enterprises,verifying H3.In order to reduce the possible endogeneity problem,this paper chooses to lag two periods and increase the control variable to re-regress the model,and the regression results are basically the same as the previous one.Based on the empirical research results,this paper proposes feasible suggestions for controlling financial risks.