Study On The Impact Of Shareholding Structure On The Performance Of Cross-Border M&A In Chinese Manufacturing Industry

Since China’s accession to the WTO,cross-border mergers and acquisitions have become one of the most important ways for Chinese companies to participate in the global economy and make international direct investment,as well as an effective way to expand into international markets.In recent years,the manufacturing industry has been at the heart of crossborder M&A events carried out by Chinese companies,playing an important role in outbound investment as well as in improving international competitiveness.Nowadays,China is in a special period of rapid upgrading from traditional industries to new industries,and in the context of China’s economic transformation,cross-border M&A plays an important role in the market economy and has become an important means of strategic development and international expansion for companies.At the same time,companies may encounter some uncertainties when conducting cross-border M&A activities,resulting in the failure to realise the expected benefits and effects,and unreasonable shareholding structure is a prominent problem in existing cross-border M&A failures in China.In the case of cross-border M&A in the Chinese manufacturing industry,the impact of equity structure on the performance of cross-border M&A is particularly evident,as an overly complex equity structure may lead to opaque and unregulated business management problems,which in turn affects the performance of cross-border M&A.Therefore,a comprehensive assessment of the performance of a company after cross-border M&A is the key to evaluating the success of M&A activities.Therefore,it is of great theoretical and practical significance to study the impact of equity structure on the performance of cross-border M&A in the Chinese manufacturing industry,which can effectively improve the performance of Chinese manufacturing enterprises in crossborder M&A through optimising the equity structure,so as to better realise the cross-border expansion and strategic development of enterprises.This paper selects Chinese manufacturing industry cross-border M&A data from 2005-2019 for empirical analysis to explore the impact of equity structure on cross-border M&A performance and introduces internal control index as a mediating variable,which helps to analyse the mechanism of equity structure on cross-border M&A performance in a more comprehensive manner.Comprehensive performance evaluation indicators are constructed through factor analysis,descriptive statistics and correlation analysis are conducted based on sample data,followed by a multiple regression model to verify the relationship between equity structure,internal control and cross-border M&A performance.The findings reveal that,firstly,there is a positive relationship between equity concentration and cross-border M&A performance,while equity checks and balances are negatively correlated with cross-border M&A performance,which indicates that in cross-border M&A,high equity concentration is more conducive to achieving M&A objectives than a decentralised equity structure;secondly,equity concentration is positively correlated with internal control,while equity checks and balances are negatively correlated with internal control.The higher the equity concentration,the greater the influence of the first largest shareholder on corporate decision-making and internal control,which promotes the construction of an internal control system.In contrast,a high degree of equity checks and balances leads to the decision-making power of the first largest shareholder being restricted by other shareholders,which reduces the influence on internal control;thirdly,Internal control plays an intermediary role in the relationship between the impact of equity structure on the performance of cross-border M&A The better the internal control system,the stronger the ability to control the risks and control the cross-border M&A,thus improving the success rate of cross-border M&A.Based on the above findings,this paper puts forward three feasible suggestions,which are to formulate a clear strategy and plan before cross-border M&A,Increase the shareholding ratio of the largest shareholder,and to improve the level of internal control.