The Research Of The Improvement On The Performance Of M&A Based On The Absorbtive Capacity

M&A is a powerful resource allocation means of modern capi tal markets, which is the methods and means for enterprises to g rowd. Chi na’s overseas M&A volume began to grow by leaps and bounds since2004, which in2004-2011compound annual growth rate of up to25%. In recent years, especially after the2007global financial crisis, Chinese enterprises overseas M&A performance is very eye-catching. However, cross-border mergers and acquisitions it self can not ensure the success of Chinese multinationals, how to i mprove the overseas M&A performance of Chinese enterprises need s immediately resolved. Currently, from theory to practice research, scholars gradually deepened understandings of mergers and acquisiti ons, and continue to seek ways to improve acquisition performance. scholars have analyzed numerous factors of M&A performance fro m different angles in academic circles. But from the view of enterp rise knowledge absorptive capacity to seek the factors of M&A perf ormance, and thus enhance the performance of cross-border M&A p erspective, there are still a lot of research space. if knowledge abso rptive capacity is conducive to enhancing cross-border mergers and acquisitions business performance, then, how the role of the path be tween the two?Whether the absorptive capacity with the transnationa1M&A performance improvement can be improved? Answers to the se questions has an important theoretical and practical significance t o promote Chinese enterprises to improve the performance of cross-border mergers and acquisitions.In view of this, this paper firstly defined cross-border merge rs and acquisitions of the knowledge absorptive capacity(Absorptive Capability Of M&As) combines with characteristics of cross-border mergers and ac-quisitions process. Secondly, respectively from the two aspects of external internal factors of enterprise knowledge abs orptive capacity was analyzed, external factors of knowledge absorpt ive capacity stand in the mergers and acquisitions of both the persp ective of the analysis, internal factors are from the perspective of t heir own merger and acquisitions analysis. Furthermore, using the a bsorptive capacity theory studies the internal relationship between en terprise knowledge absorptive capacity and overseas M&A performa nee.This paper presents a theoretical model for cross-border M&A knowledge acquisition mechanism as well as its effect on the way t he M&A performance analysis which is based on the perspective of absorptive capacity.The part of the empirical research,this paper refers to the Coh en&Levinthal(1990) model to measure the absorption ability of ent erprise knowledge, using the Zephyr global M&A transactions analy sis library,selecting the research object from the Shanghai and Shen zhen listed companies which happened to cross-border mergers and acquisitions during2001-2009with the relevant data as of2012fin ancial index,using the principal components factor analysis, correlati on and regression analysis to verify the influence of knowledge the absorption capability of transnational M&A performance. The empi rical results show that there is a positive correlation between these two factors and acquisition performance. On the other hand,this pap er takes the ZOOMLION company and TCL company merger acqui sition events as comparative case studies,analyzing the relationship b etween the non-measurable knowledge absorptive capacity and perfo rmance of M&A.