Government Intervention And The Operating Performance Of Cross-border Mergers And Acquisitions

Nobel prize-winning economist stigler once pointed out: the United States almost none of the large enterprise is growing up only by the internal accumulation, all the big companies have experienced growing up by the way of m&a. As As a developing country, we are to improve corporate governance and corporate performance by means of mergers and acquisitions more often, especially in response to "go global" policy, raised a hot wave of cross-border m&a in China. However, because of many differences in international environmental and Global competition market’ complicated in Transnational mergers and acquisitions, the difficulty of m&a and merger and acquisition risk is very high, Only a handful of cross-border m&a cases succeeded. Transnational mergers and acquisitions in China really brought corporate profits for the enterprise or brought the wealth for shareholders? For the discussion of the problem and the answer became the starting point of this study.This paper firstly combed the domestic and foreign research literature about the performance of transnational mergers and acquisitions and the relationship between government intervention and m&a performance. Based on the research results, summarizes the related theory basis and literature review, laid a solid theoretical foundation for the discussion below. Secondly, this paper makes an analysis of dynamics about transnational mergers and acquisitions from the perspective of the government.In addition, using event study method and accounting method to evaluate the short- and long-term performance of cross-border m&a, the evaluation results showed that transnational mergers and acquisitions bring the positive performance of m&a in three days before and after the merger announcement for A-share listed companies. But in the long term, from 1 to 3 years, the merger and acquisition activity has not increased the wealth of the enterprise value. In addition, we add the variables of government intervention, researched the government intervention impact on the performance of m&a in cross-border m&a. The results show that if transnational mergers and acquisitions were launched by the state-owned enterprises, the investors have greater synergistic effect of expectations, the higher the degree of government intervention in the transnational merger and acquisition, the better operating performance of companies.Finally, this article mainly from the perspective of government, put forward the Policy Suggestions to Improve the operating performance of the cross-border m&a in our country, and points out the future research direction.