Analysis Of The Impact Of "One Belt One Road" Initiative On The Cross-border M&A Performance Of Chinese Enterprises

As of June 2021,in nine years,China has signed a total of 206 cooperation documents with 140 countries and 32 international organizations on the One Belt One Road Initiative,which has gradually expanded with the global influence of this initiative.Even in 2016,GDP of the countries along the One Belt One Road Initiative already accounted for 16% of the total global GDP.Meanwhile,the sixth wave of cross-border merger and acquisition(M&A)is emerging,and unlike the 5th wave of cross-border M&A which occurred in the turn of the twentieth century and the twenty-first century,the M&A behavior of the sixth wave of cross-border M&A is becoming more and more diversified,and the target parties have expanded from enterprises located in developed countries to developing countries,and the motivation for M&A has become more complex.Therefore,under such macroeconomic conditions,seizing the opportunity to study the impact of the One Belt One Road Initiative on the performance of Crossborder M&A of Chinese enterprises and the mechanism behind it can promote the more efficient circulation and use of economic resources,and also lay a certain theoretical foundation for the cross-border M&A behavior of Chinese enterprises.Taking 229 cross-border M&A events of Chinese listed enterprises from 2010 to 2019 as a sample,and uses the cumulative abnormal return obtained by the event research method to measure M&A performance,and constructs Differences-in-Differences model to study the impact of the quasi-natural experiment,the One Belt One Road Initiative on the cross-border M&A performance of Chinese enterprises.The research results show that: First,the One Belt One Road Initiative has a significant positive impact on the performance of cross-border M&A of Chinese enterprises,the One Belt One Road Initiative mainly affects the convenience of logistics from countries along the route at the macro level,and affects the assets and profitability of the M&A enterprises themselves at the micro level;second,according to heterogeneity analysis,both the economic level of the target country and the nature of ownership of the acquirer’s enterprise will have a certain impact on the performance of Chinese enterprises in cross-border M&A.The higher the degree of economic development of the target country,the higher the performance of cross-border M&A.Moreover,compared with other enterprises,state-owned enterprises do not have higher performance in M&A,but private enterprises have achieved better cross-border M&A performance.In addition,the degree of economic freedom has played a mediator in the mechanism of One Belt One Road Initiative to promote cross-border M&A performance of enterprises,which has had a certain positive impact on the performance of cross-border M&A of Chinese enterprises,and the degree of economic freedom is conducive to the effective circulation and use of economic resources,which enhances the trade potential of regions or countries.Based on the above findings,this paper proposes that Chinese enterprises should seize the favorable period of the One Belt One Road Initiative policy,and increase the number of M&A of developed country enterprises that join the One Belt One Road Initiative,so as to more strongly support Chinese enterprises in cross-border M&A to improve their performance.Moreover,enterprises should be clear about their own scale and the driving force of cross-border M&A,and carry out M&A on the basis of considering the risks of cross-border,so as to "know each other and know each other in order to survive a hundred battles".Enterprises should also slowly shift the focus of improving short-term cross-border performance to long-term performance,and lay a good foundation for their own development with good M&A behavior.At the same time,China should also continue to promote the One Belt One Road Initiative to expand the circle of friends and provide a good policy support environment for Chinese enterprises with M&A incentives.In addition,we will vigorously strengthen the "five-link policy",and communicate and cooperate with countries along the route in terms of economy,trade,culture,people,technology and other angles,so as to enhance the synergy effect of cross-border M&A of Chinese enterprises to improve the performance of mergers and acquisitions.When cross-border M&A of state-owned enterprises,at the same time,consider their economic and strategic benefits,and steadily improve the cross-border M&A performance of state-owned enterprises on the basis of ensuring the achievement of strategic benefits,so as to feed back the strategic benefits of enterprise M&A.