The Empirical Study On The Relationship Between Entrepreneurial Orientation And Cross-Border M&A Performance

As one of the main means of enterprises foreign direct investment, cross-border M&A could save a lot of acquisition cost and time resources, it had become the most important way to grow up for western multinationals since the beginning of the last century. With the rapid development of China’s economy in recent years, more and more Chinese enterprises are doing cross-border mergers and acquisitions (M&A) to acquire global factors and expand its international market, and has becoming a new force of the cross-border M&A market This strategy, however, is proven to be not very successful in practice with a number of varying reasons for its ineffectiveness. The failures such as TCL, SAIC and so on actually abounds. Consequently, this necessitates an in-depth analysis of the determinants of cross-border M&As in order to gain additional insight on how to improve M&A performance. It is not only the question which the enterprises "going out" most concerned, but also the academic hotspot which researchers in M&A area explored and seek to resolve.This paper reviews and summarizes the relevant research about cross-border M&A performance theory and entrepreneurial orientation theory, and on the basis of them, we proposed an integrated analysis model which combines the entrepreneurial orientation and environmental dynamism and cross-border M&A performance from the perspective of entrepreneurship. The first section introduces the background and purposes of this study and the research methods. The second part reviews and summarizes the main literatures about entrepreneurial orientation and cross-border M&A performance, and establishes the foundation for the theoretical analysis below. Part Ⅲ, from the perspective of entrepreneurial orientation, we put forward the hypothesis of this research and analysis model according to the relationship of environmental dynamism. Part IV first describes the definition of variables related to this research and its measurement. Then, we use the Zephyr data by2011and choose44cross-border M&A deals initiated by the enterprises listed in Shanghai and Shenzhen Stock Exchange over the years2000-2009, providing a comprehensive study and an empirical analysis on the proposed hypothesis by using the analysis of ANOVA, linear regression and group-level regression. The last part, we conclude with a few quite meaningful conclusions and revelations.The mainly study conclusions as follows:we show that it exists positive correlation between the entrepreneurial orientation and cross-border M&A performance, and the entrepreneurial orientation is one of the key variables influence the cross-border M&A performance. At the same time, environmental dynamism has a regulatory role on the relationship between the two. Besides, the regression results on the control variables also reveal some factors influencing the M&A performance. Specifically, the less ideal is the cross-border acquiree’s institutional environment, the smaller the cultural difference; and the larger the scale of the Chinese enterprise acquirer, the larger the magnitude of the M&A tending to favor the performance of the Chinese enterprise. If these factors go in the opposite directions, the performance of M&A deteriorates. In addition to these key factors, the financial risk of the acquirer enterprise also has impact on M&A performances, though the influences are relatively small.