Research On The Influencing Factors Of Chinese Enterprises' Mergers & Acquisitions In The United States

The ever increasing cross-border mergers & acquisitions of Chinese enterprises reflect the growth of Chinese economy. The United States, as the second largest area for Chinese transnational mergers & acquisitions after European Union, and the most developed country in the world, has received great attention in the academic researches of mergers & acquisitions. And the immediate outcome of M&A, as a critical part of the whole transaction, decides directly the transaction's success or failure. But the studies of Chinese M&A in the US mainly focus on US national security review, and the research on M&A's outcome and its influencing factors seems far from enough.Based on former studies and former analytical model, with a new variable added, this current study aims to have better understanding on the question of Chinese enterprises'M&A in the US. This paper uses the empirical analysis of binary logistic regression, trying to find out the institutional and non-institutional factors that have influences on the outcome. It finds that the institutional factors have no significant effects on transaction results. And in the non-institutional factors, the buyers'employment of professional advisors has significant positive correlation with the completion of transactions, and the usage of cash payment also has a positive but not significant influence on the completion of transactions. In addition, when the buyer and the target are in the same industry, the buyers' employment of professional advisors can drive the transaction to complete.