Has The Financial Crisis Changed Chinese Overseas M&A Performance?

M&A is an important way for enterprises to achieve rapid expansion. Since the 19th century, five M&A wave raised in the United States. In China, along with multi-level capital market system construction and repeatedly suspended IPO, M&A has become an important financing method for China’s enterprises to expand the scale and enhance market competitiveness and the rapid development.In the same time, Chinese overseas M&A are constantly refresh history. After the financial crisis, global stock market fell sharply, Chinese overseas M&A face a rare opportunity. In 2013, it has a scale of 700 billion U.S.$. But overseas M&A is not always smooth sailing. CHINALCO’s failures in Rio Tinto’s acquisition vivid, SAIC acquisition of SsangYong Motor suffered "union door" trap constantly sounded the alarm. Faced with surging overseas M&A, we have to ask:whether overseas M&A enhance the performance of Chinese enterprises? What factors affect the performance of overseas M&A? Are there any changes before and after the financial crisis? On the issue of M&A performance, domestic literature varies; as to the change before and after the crisis, very few comparative empirical analysis talks about it. Therefore, the study analyzes the performance of enterprises overseas M&A after the financial crisis and its change of impact factors for the guidance of Chinese enterprises in overseas M&A is important.Considering the lack of effectiveness of the A-share market, as well as accounting indicators do not reflect the strategic value of M&A and other issues, the paper choose a perspective from H shares and use event study method, select oversea M&A sample data from 2003 to 2014, which Buyer is H-share listed companies, then analyze the performance of overseas M&A and its influencing factors, explore whether a change has occurred before and after the financial crisis.Empirical studies show that:The average performance of Chinese enterprises overseas M&A is positive, but on the whole, it does not achieve significant positive; Before the financial crisis, overseas M&A performance is significantly negative; After the crisis, M&A performance is not significantly positive, but compared to the pre-crisis, post-crisis overseas M&A performance has been improved significantly; Overall point of view, RMB appreciation, increased financial leverage have enhanced the performance of overseas M&A, while the nature of state-owned, method of payment had no significant effect; The impact of targets in developed countries and large-scale undergone significant change before and after the crisis, before the crisis significantly negative, post-crisis significantly positive; After the crisis, the overseas M&A in energy, consumer cyclical goods industry is significantly positive, while M&A in mechanical, financial industry is significantly negative.Finally, according to research findings presented, the paper proposed measures from business and government perspectives. For businesses, No.1, Making a strategy to avoid blind merger; No.2, Study the successful experience of predecessors, improving the ability to integrate overseas M&A; No.3, Choose the reasonable industry, region, mode of payment and financial leverage to enhance the performance of overseas M&A; No.4, Strengthen internal governance, reduce agency costs. For the Government, First, relax exchange controls, implement a more flexible exchange rate regime; Second, adhere to the "going out" strategy, improve relevant laws and strengthen international communication; Third, improve the capital market system to promote the development of overseas M&A.