Study On The Influence Of Overseas Merger And Acquisition Of Chinese Enterprises On Management Efficiency And Its Mechanism

Cross-border M&A is an important way to help enterprises obtain new resources,technical knowledge and competitiveness in the external market.In the context of the rapid development of the global market,enterprises’ participation in cross-border M&A has gradually become an important way for enterprises to achieve rapid development.As the largest developing country in the world,China has huge market potential and consumption demand,and is the largest outbound investor among emerging economies.Therefore,both the international market environment and the domestic economic development environment show the important position of Chinese enterprises in the international market.The increasing scale of Chinese enterprises,their capital and market competitiveness have promoted the realization of cross-border mergers and acquisitions of Chinese enterprises.One of the core issues in the study of cross-border M&A is the benefits before and after M&A.Whether enterprises can achieve M&A objectives by participating in cross-border M&A?Achieve enterprise value improvement and overall efficiency improvement?To pay attention to these issues,first of all,we need to clarify the enterprise management issues after cross-border mergers and acquisitions.Therefore,whether to improve the management efficiency is the key to the research.Based on the above thinking,this paper combines qualitative research and quantitative research methods,quantitative analysis,case analysis to make a systematic analysis.First of all,we explain the relationship between enterprise cross-border M&A and management efficiency and the mechanism of action by combing the existing theories of cross-border M&A,enterprise development theory,management power theory,human resources theory,branding theory and technology spillover.Secondly,using Chinese listed enterprises from 2010 to 2019 as research samples,we adopted the event study method to analyze the causal relationship between cross-border M&A and management efficiency,tested the impact of cross-border M&A on management efficiency by constructing the difference difference model(DID),and conducted the country heterogeneity analysis and firm heterogeneity analysis.At the same time,considering that cross-border mergers and acquisitions may have indirect effects on enterprise management efficiency through multiple paths,we further build the intermediary effect model and the moderating effect model on the basis of the basic econometric model,and analyze the mechanism of cross-border mergers and acquisitions on enterprise management efficiency from the perspectives of human capital,corporate culture and technology spillover.Finally,according to the empirical analysis results,we selected three typical practice cases of human capital,cultural distance and technology spillover,and tested the scientificity and validity of the empirical results from the perspective of practice.As an important part of enterprise development strategy,this paper systematically analyzes the characteristics and mechanism of cross-border M&A on enterprise management efficiency,providing scientific reference for enterprises to optimize management mechanism and improve output performance.This paper holds that the process of enterprises participating in M&A has phases,and the influence of M&A itself on management efficiency has multiple paths and forms,which is not a simple direct relationship,and each stage before and after M&A does not exist in isolation.The management efficiency of enterprises is mainly reflected in the process of resource integration after M&A.Therefore,in the mechanism analysis,this paper verifies the influence of Chinese enterprises’ participation in cross-border M&A on management efficiency under different intermediary and regulatory mechanisms,so as to provide references for enterprises’ participation in cross-border M&A and improvement of management efficiency.To sum up,the research contributions of this paper are reflected in the following aspects:First,there are abundant studies on cross-border M&A in existing literature,but few scholars pay attention to the effect of cross-border M&A on the management efficiency after M&A.From the perspective of cross-border M&A,this paper explores the impact of cross-border M&A on the management efficiency,filling the existing research gap to some extent and expanding the relevant theories of cross-border M&A.Second,this paper analyzes the effect mechanism of cross-border M&A of Chinese enterprises on management efficiency from multiple perspectives.By constructing a theoretical analysis framework,it explores the effect mechanism of human capital perspective,cultural distance perspective and technology spillover perspective on cross-border M&A of enterprises on management efficiency.In the analysis of cultural distance,we conducted an in-depth analysis of the six dimensions of cultural distance respectively to verify the difference of the role of the six dimensions of cultural distance on enterprise management efficiency.Thirdly,we conducted heterogeneity analysis from the perspective of different types of country differences,and explored the differences in the impact of cross-border M&A on management efficiency in different countries.The main conclusions of this paper include the following aspects:First,cross-border mergers and acquisitions of Chinese enterprises play a significant role in improving management efficiency.After cross-border mergers and acquisitions,enterprises can achieve economies of scale and scope.By learning advanced technology and management mode of overseas enterprises,enterprises can apply management experience of the acquired enterprises to domestic enterprises to achieve integration of technology and human resources,thus improving enterprise management efficiency.We further find that cross-border M&A has a negative impact on management efficiency in the short term,but with the passage of time after the completion of M&A,the negative impact brought by cultural distance gradually weakens,while the positive effect brought by human capital management and technical resource integration gradually strengthens,and finally improves the management efficiency of enterprises.Second,the country heterogeneity analysis found that the impact of cross-border M&A on management efficiency is different due to the development background of the host country.From the perspective of the target countries of China’s cross-border mergers and acquisitions,these countries are mainly developed economies,which can play a positive role in improving the management efficiency of Chinese enterprises.Specifically,if the host country is a G8 member or developed country,it has a stronger effect on the improvement of management efficiency.As the main target countries of China’s cross-border mergers and acquisitions,the United States,Japan and the European Union all play a significant role in improving the efficiency of enterprise management.The heterogeneity analysis shows that the impact of cross-border mergers and acquisitions on management efficiency is stronger for private enterprises than for state-owned enterprises.The eastern region is larger than the central region is larger than the western region;Cross-border mergers and acquisitions of enterprises with high labor productivity have significantly stronger improvement on management efficiency than those with low labor productivity.Thirdly,through the analysis of the mechanism of cross-border M&A on management efficiency,we find that,from the perspective of human capital,after Chinese enterprises participate in cross-border M&A,executives with overseas experience can further promote the future development of enterprises and have a positive impact on the improvement of enterprise management efficiency.After the cross-border M&A of Chinese enterprises,if the executives of the M&A enterprises have overseas experience,the positive promoting effect of cross-border M&A on the management efficiency of enterprises will be further strengthened.From the perspective of culture,cultural distance inhibits the impact of cross-border M&A on management efficiency.Influenced by differences such as cultural conflict,value conflict,right preference,risk ability and responsibility bearing,the greater the cultural distance between the acquirer and the acquired party,the more detrimental it is to the improvement of management efficiency after M&A.After enterprise integration,it is difficult to realize multicultural integration and unify corporate cultural values,and resource integration is blocked,which will not be conducive to the improvement of management efficiency after enterprise merger and acquisition.After further analysis,we find that the improvement of management efficiency after overseas merger and acquisition is affected by various cultural distance.Power distance is easy to cause power conflicts between management and employees,the distance between collectivism and individualism is easy to cause interest conflicts,and the distance between masculinity and femininity is easy to cause value conflicts.Uncertainty avoidance and long-term and short-term orientation distance are easy to cause corporate decision-making conflicts,while personal responsibility and social responsibility are easy to produce value conflicts.From the perspective of technology spillover,the more patents cited by an M&A company,the more technologies it will acquire from overseas through cross-border M&A,and the more mature resource elements beyond its own country,such as advanced technology,human resources and management experience of the M&A company,will be able to apply advanced technical conditions and management concepts to the development of local enterprises.Further improve the management efficiency after merger and acquisition.