Chinese Companies’ Cross-Border Mergers And Acquisitions:the Post-M&A Performance

Cross-Border Mergers and acquisitions is an important way to join the competition on world markets. With the declarations of Go Global strategy and Strategic Transformation, Chinese companies are eager to make an acquisition.This paperexamines the impact of Chinese companies’ strategic chioces on post-acquisition performance.Our data covered170acquisitions, from which61are Chinese acquirers and109are American’. Using DEA-Malmquist Model to measure the efficiency of acquirers’ financial performance and Event Study to calculate the accumulative abnormal return (CAR) which reflects acquirers’ stock fluctuation, we find that the efficiency of acquirers had a continuous declination and the CAR is not significant different from0.Then we selected6strategic factors as independent variables to see their impact on acquirers’ post-acquisition performance. We find that the6factors has different impact on different aspect of performance. The motivation of M&A has a significantimpact on the acquirers’ corperate efficiency while the form of payment and the industry relevance between acquirer and target has a significantimpact on profitability.