The Motivation And Performance Analysis Of Chinese Enterprises’ Overseas Mergers And Acquisitions Under The Background Of "One Belt And One Road"

As global integration increases,mergers and acquisitions are making a global comeback,providing a unique opportunity for Chinese companies to become global players through M&A.At the same time,the implementation of the "Belt and Road" initiative and related support measures provide tremendous opportunities for companies to upgrade.As Chinese companies seek to gain technological and resource advantages and access overseas markets,the number and value of M&A continues to set new records: between 2014 and 2021,Chinese companies made 4,299 M&A transactions in multiple countries and regions,with an actual transaction value of US$560 billion.The number of Chinese M&A has been high in recent years,as has the value of the deals.However,a comprehensive look at the post-merger business environment of many Chinese companies reveals that successful M&A is not the end but the beginning of trouble.The purpose of this paper is to study whether M&A can achieve the expected motivation,and whether corporate performance has improved compared with previous M&A,and to provide experience and enlightenment for corporate M&A.This paper selects the case of Hengan International’s merger and acquisition of Malaysia Royal City Group as the research object,and uses the event study method to discuss the impact of the merger and acquisition event on Hengan International’s short-term market performance.At the same time,in terms of the long-term financial performance of mergers and acquisitions,the event study method and financial index method are adopted respectively to study the impact of mergers and acquisitions on the long-term financial performance of Hengan International from different perspectives,to learn whether this case can encourage Chinese enterprises to actively initiate overseas mergers and acquisitions,and to explore how this case encourages Chinese enterprises to conduct overseas mergers and acquisitions for their own development.At the same time,it will provide suggestions for other enterprises’ future mergers and acquisitions under the Belt and Road Initiative.