The Study On Short-term Performance Of Chinese Companies' Overseas M&As

With the acceleration of global economic integration, in order to enhance the global competitiveness, more and more Chinese enterprises choose to "go out", crossborder M&A events occur more frequently. How the performance of cross-border M&A events and which factor affects the performance of cross-border M&A? This is a problem with both theoretical significance and practical significance.Foreign scholars are in a leading position on the Research of cross-border M&A performance problems, and they have also got a lot of research results. But most of their results are based on the United States and other developed capital markets, even for developing countries related research, investigations of the cross-border M&A performance problem in China are not enough. Due to the national conditions and operation of the capital market are different from each other, cross-border M&A performance theory and research results of foreign scholars may not conform to the actual situation of China. At the same time, compared with foreign scholars, the domestic scholars' research achievements of cross-border M&A is relatively lagging behind, so it is necessary to do further in-depth research.about Chinese enterprises cross-border M&A performance.This paper uses event study method to study the short-term performance and its influencing factors in Chinese enterprises cross-border M&A events with the data of 110 multinational M&A events, which are launched by China's A-stock market listed companies in 2006-2015. At first, the total sample are divided into two groups, one group is on behalf of the acquired party in a high industry prosperity, another one is on behalf of the acquired party in a low industry prosperity. Meanwhile, the cross-sectional regression results show that: when acquired party in high industry prosperity average gained 8.54% more abnormal rate of return than acquired party in low industry prosperity.When the greater the scale of cross-border mergers and acquisitions, crossborder M&A events can gain greater recognition of capital markets. As for acquirer is state-owned enterprises or private enterprises, the short-term performance of cross-border M&A is not obviously affected.