Chinese Companies' Cross-border Mergers And Acquisitions-strategic Choice And Merger Performance

0n the content of the structure reform of supply side and a lot of Chinese enterprises take the cross-border M&A as a "springboard" to access advanced technology,management skills and international operating experience and other strategic resources and assets to make up for their disadvantages,promoting international competitiveness,based on the internationalization theory of emerging markets and China's unique institutional environment,according to the “springboard” thery of cross-border and the institution theory,this paper does theoretical analysis,empirical analysis and case study on the cross-border M &A financial performance and innovation performance of Chinese enterprises,and also explain the impact of transaction choices on the performance of cross-border M&A systematically,from the enterprise micro perspective.This paper first describes trading strategy and performance of cross-border M&A activities of Hanergy through deep cases studies,and induces the theoretical assumptions,and then test these theoretical assumptions empirically by the data of Chinese listed companies from 2005 to 2015 in Thomson Reuters Database,analyze strategy choices and the effect on the performance of cross-border M&A,including time opportunities,payment,premiums,share holding and professional intermediary advisers,and probes into the adjust-ment role of cultural distance.Firstly,this paper studies trading strategies and performance of cross-border M&As activities of Hanergy group deeply.Hanergy group has realized the transformation and upgrading of advanced technology through cross-border M&As.However,due to the lack of ownership advantages,Hanergy group carefully chooses the trading time.Hanergy group win the initiative by seizing the opportunity that the target enterprise was in financial crisis or actively seeking cooperation.Because cash payment can enhance the acquirer's strength and acquisition intention,Hanergy group proposed the cash payment method,which promoted the acquisition efficiency;In the assessment of the premium level,Hanergy group not only comprehensively evaluated the value of tangible assets and intangible assets,but also paid attention to the investigation of debt,thus reducing the acquisition premium.In order to acquire key core technologies,Hanergy group chosed to take 100% control of the target enterprise.Because reverse mergers and acquisitions strengthen the "outsider disadvantage" and "the disadvantage of the newcomers",So Haneng group choosed the international well-known professional intermediary consultants to improve the performance of M&A.The correct trading strategies have improved the financial performance and technological innovation ability of Hanergy group,and the synergistic innovation effect was also remarkable.On this basis,this paper puts forward the theoretical hypothesis about the influencing factors of cross-border M&A performance of Chinese enterprises from the perspective of trading.The second part test theoretical hypothesis of the financial performance empirically by the sample of cross-border M&A events of the Chinese companies listed in shenzhen,Shanghai,Hong Kong,New York from 2005 ~ 2015 in Thomson Reuters M&A Database.Firstly,the accounting index method is used to construct the comprehensive financial index system,and then the principal component analysis is used to evaluate the changes of financial performance before and after the merger.The research shows that the cross-border M&A of Chinese listed companies have achieved negative financial performance.Secondly,the research found that financial performance of the acquirer is better,if the acquirer acquisit the target enterprise when it goes into a financial crisis or actively seek cooperation;When the acquirer uses the cash payment to pay fees of M&A,the financial performance of the acquirer is better;the higher the M&A premium level,the worse the M&A financial performance;The higher the ownership,the better the enterprise financial performance after the merger;The selection of international professional intermediary consultants has positive influence on the cross-border M&A financial performance of the acquirer,while the cultural distance reinforces this positive effect.The empirical results basically confirm the theoretical assumptions of the case study.The research also found that the M&A experience has a significant positive influence on the financial performance of Chinese enterprises.Private enterprises have better financial performance than state-owned enterprises.The third part adopts the PSM method to study the cross-border M&A innovation effect by matching the domestic M&A enterprises to the cross-border M&A enterprises.In this paper,we use the Chinese listed companies which have done cross-border M&As in 2005 ~ 2015 as the treatment group,and the listed companies which have done domestic M&As in the same time period as the control group.It has been found that cross-border M&A enhance the innovation ability of the enterprises with cross-border M&A.Majority ownership control significantly positively affects the improvement of the innovation ability of the cross-border M&A enterprises.At the end of this paper,the conclusions of case study and empirical study are summarized and the policy recommendations for enterprises and government are put forward.In this paper,the research makes up for the blank of using "springboard" theory of internationalization of emerging markets to explain transaction behavior characteristics and performance of the cross-border M&A of Chinese enterprises,so as to further expand and enrich the theory of "springboard".This research has guiding significance to the relatity.