Study On Experience,Organizational Learning And The Performance Of Cross-Border M&A Of Chinese Listed Companies

In 2016,China's foreign investment started to accelerate largely,the scale of overseas investment is expanding,Sino-Chemical,HNA,Zoomlion Group,etc.conducted the transnational M&A(mergers and acquisitions).Many industry experts believe the boom of China's overseas M&A is an inevitable trend as China's economic development and enterprise internationalization.However,the M&A is very complex and difficult.Comparing with western enterprises,they are inexperienced,since the history of Chinese enterprises going abroad is short.According to the latest report by the Ministry of Commerce,only 13% Chinese enterprises of overseas projects are in profitable state,63% are in a non-profit or loss.This result has aroused our reflection on transnational M&A,the factors influencing the performance of transnational M&A are also gradually attracted by academia and the business community,especially the question of whether the enterprises can use the experience of previous M&A to obtain the anticipated transnational M&A performance became a hot issue in the field.Based on empirical study,this paper constructs the empirical study--M&A ability--the acquisition performance model to try to uncover the mystery of the relationship between experiential learning and cross-border M&A.This study takes the 135 transnational M&A conducted by Chinese listed companies between the year 2005 and 2013 as a sample.We want to know the results of experiential learning(M&A performance)and the factors influencing the relationship between them through descriptive statistics and hierarchical regression analysis.Firstly,this paper tested the relationship between the experience and the performance of M&A to found that with the increasing of the experience,the performance presents a trend of gradual deviation.Moreover,there is "inverted U type" nonlinear relationship between them over time.Then,according to the experience sources of M&A,this paper analyzed the different impacts between multinational M&A experience and domestic M&A experience on multinational M&A performance.The conclusion is that two kinds of experience influencing the performance of transnational mergers and acquisitions negatively,while the effect of experience of transnational M&A is significantly higher than domestic M&A.This result shows that the experience of M&A is not mechanical,experience is not necessary of positive effect,empirical learning is effected by environmental adaptability and empirical heterogeneity issues.At the same time,it shows that the only empirical learning can not produce the empirical effect.As the resource base view states that the acquisition ability based on experiential learning and resource endowment is the key to the success of M&A,and the M&A enterprises will acquire a certain acquisition management ability through the correct experience and abundant resources.This ability optimizes the allocation of resources in M&A activities.Therefore,after studying the direct relationship between experiential learning and merger experience,the paper further introduced the regulative effect of the property of state-owned holdings on the relationship between experience and performance based on organizational learning and resource support theory.Through the empirical results of the sample of state-owned enterprise,the empirical study of M&A of state-owned transnational corporations,we found cautious learning attitudes and the government's tangible and intangible resources adjust the relationship between experience and M&A performance,but the government's "hand effect" is mainly embodied in the State-owned enterprises operating losses because of the policy burden.Finally,the conclusion of this paper gives the enterprise and the government some suggestions.Firstly,the experience of M&A cannot work independently on the performance of transnational M&A,and enterprises can not judge the applicability of M&A experience blindly.Secondly,enterprises should attach importance to the status of experience learning in M&A activities,follow the scientific learning mechanism so as to cultivate competitive skills and apply them in practice,ultimately to truly enhance the performance of M&A.Thirdly,our government need to uphold rational and responsible attitude to support transnational M&A enterprises.The executives of state-owned transnational enterprise also have to study experience actively in conducting M&A.