Cultural Differences And The Performance Of Chinese Enterprises' Overseas M&A

In recent years,China has continuously accelerated the process of global economic integration.Chinese enterprises have also begun to being internationalization.Since 2007,Chinese enterprises set off a wave of overseas mergers and acquisitions wave.Chinese enterprises want to achieve internationalization through overseas mergers and acquisitions,access to strategic resources,to avoid trade barriers,open up the international market,access to foreign advanced technology and commercial resources.Overseas mergers and acquisitions,as one of the main ways of FDI,are becoming more popular in China.At the same time,this paper reviews the research on the influencing factors of overseas M&A performance,and finds that domestic and foreign scholars are mostly doing research on foreign companies,and the empirical analysis of domestic M&A is not common.This paper first analyzes the performance of overseas mergers and acquisitions before and after M&A,trying to verify whether overseas acquisitions can play a positive role in corporate performance.In this paper,the use of financial indicators and incident research methods for overseas mergers and acquisitions of enterprises before and after the performance of mergers and acquisitions was event study.For the event study method,this paper calculates the cumulative excess returns of the window periods(-10,10)and(-1 1,1),respectively,and uses the Wilcoxon univariate test to accumulate the three groups Excess rate of return for inspection.The empirical results show that the median excess returns of the window periods(-1,1)and(-10,10)are significantly greater than zero.Based on the two research methods,it can be seen that different corporate performance measurement indicators will produce different empirical results.In general,overseas mergers and acquisitions can have a significant positive impact on most of the indicators,can be considered overseas M&A performance for the company to create positive value.In order to further influence the cultural distance on the overseas M&A of Chineseenterprises,this paper establishes a multiple regression model.It is found that.cultural distance is one of the important factors that affect the performance of M&A in Chinese enterprises by comparing the control variables and the multiple regression models that are explained,and adding the cultural distance on the basis of the cultural distance.Cultural distance can have a negative impact on the performance of Chinese companies overseas M&A,that is,to weaken the value of overseas mergers and acquisitions to create the company.At the same time,it also validates that Chinese enterprises with the experience of mergers and acquisitions and financial advisors can not reduce the negative effect of cultural distance on the value of overseas mergers and acquisitions,and explain the reasons.