A Meta-analytic Investigation On Influencing Factors Of The Performance Of Chinese Enterprises' Cross-border M&A

With the rapid development of Chinese economy and the transnational expansion of Chinese enterprise, a substantive body of research began to focus on the role of institutional environment in mergers and acquisitions (M&A). However, there is no conclusion in that research. To resolve these inconsistent conclusions, we choose three controversial factors (culture distance,state ownership, prior experience)based on the three aspects of institutional theory(regulative, normative, cognitive).Some studies suggested that the 3 factors can create obstacles to achieve integration benefits. However, the opposite view that the 3 factors will enhance the M&A performance and empirically supported. To reconcile these conflicting perspectives and findings, we present a model to integrate the role of institutional environment in Chinese Cross-border M&A process, and we develop a set of hypotheses regarding mechanisms through which institutional environment affect M&A performance. The results of a meta-analysis of 40 studies, with a combined sample size of 8,606M&A,suggest that state ownership and prior experience have a significant positive impact on the performance of Chinese enterprises, and cultural differences have a significant negative impact on the performance of Chinese enterprises in the cross-border mergers and acquisitions process. We also made a comparison of the classification of the performance: the state ownership of the enterprise has a more positive impact on the long-term shareholder value than the short-term wealth effect; the negative influence of cultural difference on M&A operating performance is more stronger than on shareholder wealth effect; compared with the shareholder wealth effect, prior experience have a more significant impact on operating performance; compared with the short-term wealth effect,prior experience has a more positive impact on the long-term shareholder value. Based on the research results and the Glacier model, we constructed a Glacier Model of how the institutional factors affect the performance of Chinese enterprises in cross-border mergers and acquisitions, which can be more dynamic and systematic to explain the role of the three institutional factors in Cross-border M&A process. The implications and suggestions for Chinese M&A research and practice are discussed.The innovative points of the article are as follows: ?Based on the perspective of New Institutionalism, we analyzed the influencing factors of Chinese enterprises'cross-border M&A performance and proved that the relationship between the three factors and cross-border M&A performance of Chinese enterprises, and thus constructed the Glacier model to integrate the results. ?To resolve with the conflicts in the past studies, we used meta-analysis to demonstrate a convincing result based on the big sample. The methodology is a great innovation in the Chinese enterprises'cross-border M&A research.?We made a comparison of the relationship between the 3 factors and performace based on the classification of the cross-border M&A performance, which can be divided into operating performance and wealth effect(short-term and long-term).