| Merger and Acquisition (M&A) is an important means for external expansion and allocation of resource between different enterprises. Standing the perspective of acquirer, The paper select 231 samples occurred in 2004—2006 from the M&A events and study the long-term cross-regional mergers and acquisitions business performance by regarding resource flow as an intermediate variable. Based on the enterprise resource theory, organizational learning theory and hypothesis of synergistic effect, the paper construct theoretical framework that a cross-regional M&A can lead to resource flow and change the long-term performance of enterprises further. Empirical research use ANOVA analysis methods to test the long-term performance and classification performance of cross-regional M&A business, and to explore the impact of cross-regional acquisitions on firm performance from the view of resource flows. Finally, Multiple linear regression model was constructed to analyze the factors affecting the performance of M&A. To provide basis for decision making for listed companies and investors, and policy basis for policy makers and regulators as well as.The idea to expand the study is that the cross-regional M&A will cause the resource elements mobility between all kinds of enterprises and regions, which in turn will change the long-term performance of the business. By norms research and empirical analysis, the following conclusions can be acquired. First, M&A will cause resource elements in the two-way flow between enterprises, the acquisition of business and the acquired company has a dual role, both as the receiver and the sender, therefore, for the acquisition of two companies, the absorptive capacity and ability to release all of them is essential. In addition, the properties of the resource itself (complexity, specificity, compatibility and complementary) and enterprises distance (spatial distance, cultural distance, institutional distance, technological distance and position distance) is also an important factor to effect the transfer of resources efficiently. Therefore, the ability of resources between enterprises in the acquisition of the full transfer is the result of both factors. Secondly, M&A can acquire complementary resources, professional knowledge, new technology and related development capacity and have the potential to create value, at the same time, the integration is essential for creating value. Then The article describes value creation mechanism of merger integration in accordance with Integration Motivation—Integration Process—Integration of Content—Integration of performance—Financial Performance. Thirdly, the paper use ANOVA analysis methods to study long-term perfonnance of companies and reach the following conclusions:the third year performance of cross-regional M&A enterprises in China increase (0.0059) in the mean comparing with the previous year when without doing any adjustment, and decrease or increase in the mean (0.0043 or 0.001) when doing some adjustments according to the mean or median, but it is not significant statistically. Comparing the performance of cross-regional M&A with inter-regional, the conclusion can be acquired that the perfonnance of cross-regional M&A is weaker significantly than inter-regional M&A in the short term, and is better in the long term, but it is not significant statistically. At last, the multiple linear regression models were tested and reach the following conclusion:cross-regional M&A have an negative effects on the short term perfonnance and have no effect on the long term performance;fixed assets ratio of acquirers have an remarkably positive effect on enterprises performance; cash holdings of acquirers have an negative effects on the short term performance and have no effect on the long term performance.Compared with previous research, innovation of this paper include the following points:first, to propose the new study views to analyze the long-term performance of cross-regional M&A from resource flow, regarding resource flow as an intermediate variable, to analyze the long-term performance of cross-regional M&A in-depth. Secondly, to construct a theory framework that a cross-regional M&A can lead to resource flow and which can increase performances of enterprises in turn. M&A is an important means to allocate resources and create values, which can lead to resource mobility between different regions, enterprises and departments, can promote the long term performance as well as. Thirdly, Multiple linear regression model is constructed, which test the effects of perfonnance caused by cross-regional M&A and the resources flow by controlling the others factors, and acquiring the following conclusion: compared with M&A in the same region, the performance of cross-regional M&A is weak in the short term, and have no difference in the long term; the rates of fixed assets have a positive effect on the enterprises' performance; Cash holdings have an negative correlation with the short-term performance, and have no relevance with the long-term performance. |
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