Study On The Relationship Between Cross-border M&A Of Chinese Service Industry Characteristics And Performance

The history of cross-border mergers and acquisitions of Chinese enterprises isshort, the purpose of cross-border mergers and acquisitions in the early stage is toobtain resources, energy, so enterprises involved in cross-border mergers andacquisitions mostly belong to manufacturing industry. The trends of world’s fifthwave of mergers and acquisitions is that the investing target shift to servicedepartment from manufacturing department, the "Twelfth Five-Year Plan" ofdevelopment of service industry China’s State Council launched require the servicessector implementing the "go out "development strategy steadily. In this environment,service enterprises of China is bound to become the important part in cross-bordermergers and acquisitions in the future, then what is the behavioral characteristics ofservice enterprises of China has been completed cross-border mergers andacquisitions, whether the performance of post-merger improved, is there a differenceof performance under different behavioral characteristics, these are questions thearticle want to study.Based on the Summary of the domestic and foreign scholars of theoretical andempirical research in the field of cross-border M&A performance, firstly, the articleanalysis the status of cross-border M&A of China’s service industry in2001-2011andthe type of mergers and acquisitions, the proportion of acquisition of acquirer andmain constitution of M&A party, region of target company. And study theperformance of short-term and long-term performance changes of service companieslisted in the mainland sample by empirical analysis. The short-term performance iscalculated by the event study methodology to cumulate excess returns, study thethe market effects of the enterprise through empirical analysis, finding outcross-border M&A significantly enhance the short-term performance of the serviceenterprises of China, and there are significant differences in performance of differentbehavior. The long-term performance use principal component analysis method tocalculate performance scores of the pre-merger year, M&A year, the first year afterthe merger, the second year after the merger by accounting indicators, do empiricalanalysis on the long-term performance trends of service enterprises, the resultsshowed that cross-border M&A enhance the long-term performance of the enterprise,there are some differences in the long-term performance under different behavioral characteristics, but not significant. Finally, make relevant recommendations from thepoint of view of the government and enterprises to enhance the performance ofcross-border mergers and acquisitions on the basis of the status quo analysis andempirical results.This paper make empirical analysis and comparison on the short-termperformance and long-term performance of service enterprises under differentbehavioral characteristics of cross-border mergers and acquisitions, hope to providesome empirical data reference for the service companies want to conduct M&A,enabling enterprises to choose the most suitable way for the enterprise itself. However,due to the short history of cross-border M&A in China’s service industry, the samplesfor empirical analysis are not enough, hope this can be supplemented and improved infuture studies.