Distance, Information Asymmetry And Performance Of International M&A:Moderating Effects Of Population Density And Ethnic Network

With the development of China’s internationalization, China’s foreign investment has been reached a certain height, International mergers and acquisitions has become the main way of foreign investment for China’s enterprises. The geographical choice of acquisition targets, domestic investors tend to choose international or regional enterprises that be relatively close with the Chinese distance.However, in practice, we often see that the mergers and acquisition of the same country’s enterprise may not be a better thing than mergers and acquisitions of the different country, it shows the relationship between distance and cross-border mergers and acquisitions are affected by other factors. On the basis of the results of previous studies, the dissertation analysis the relationship of distance and M&A performance from the perspective of the theory of asymmetric information, because of china is at the legality of overseas expansion as the emerging economies, the dissertation studies the impact of population density on M&A performance form the organizational learning theory and population ecology theory, discuss the role of ethnic networks in overseas M&A activity.This dissertation first reviews the relevant theory and literatures of domestic and international scholars, puts forward the hypothesis of this dissertation, and establishes a complete conceptual model. Then defines the relevant variables and constructs Index System, on this basis, the dissertation makes empirical test, the samples from27different countries that the Chinese enterprises’cross-border M&A events, applies SPSS16.0statistical software tests the hypothesis is right or not by correlation analysis and regression analysis. Finally, the dissertation analyze empirical test results in detail, and puts forward some suggestions about how to improve the accuracy of the M&A target selection, as well as improve the performance of international mergers and acquisitions.