| In recent years,the overseas investment of Chinese enterprises has ushered in a boom.However,in view of China’s enterprises "going out" for cross-border mergers and acquisitions’ process and results,also faced with many problems and challenges,many domestic and foreign enterprise managers and researchers agree that: In cross-border M&A activities,improper cultural integration is the key factor leading to the failure of M&A.And the key reason for the cultural integration of enterprises after cross-border M&A is that there are cultural differences between the two sides.As for cultural differences,many domestic and foreign scholars believe that: the cultural differences will bring enterprises with awareness,practice and skills challenges,and thus affect the performance of M&A.And some other factors,such as the previous M &A experience,the industry-related relationship and so on,can regulate the impact of cultural differences on the performance of cross-border M & A.At the same time,more and more private enterprises in China are gradually entering the overseas market to carry out cross-border investment and continue to increase the acquisition of advanced technology,intellectual property and brand resources of overseas target enterprises,and even some powerful private enterprises,surpassing state-owned enterprises in the quality and amount of overseas M & A deals,becoming the new mainstay of overseas M & A.Therefore,the purpose of this paper is to examine the impact of cultural differences and its various dimensions on the cross-border M & A performance of enterprises through empirical research and test,and to analyze the regulatory effect of other factors on the relationship between the two,thus providing guidance for enterprises to formulate investment and integration strategies in the process of cross-border M & A and help to better analyze and grasp how enterprises in developing countries especially China how to better carry out cross-border M & A,and further enrich the theories and experiences of cross-border M & A happen in Chinese private enterprises and even developing countries.Firstly,from the theoretical perspective,the article analyzes the positive,negative and insignificant effects of cultural differences on cross-border M & A.At the same time,it analyzes the various factors that affect the performance of M & A at national,corporate and trading levels.And it also discusses the theoretical system and evaluation dimension of national cultural differences,and analyzes the impact of each subdivision dimension of cultural differences on cross-border M & A activities of enterprises.Secondly,in the aspect of empirical research,based on the cross-border M & A of private listed companies in China,this paper selects 32 M & A cases of private-owned enterprises completed between 2007 and 2013 as the research samples and uses incident research method to study the M & A performance of private enterprises in the sample.We take the purchase and hold extraordinary returns(BHAR)as a measure of M& A performance,and combine the national cultural differences based on Hofstede model to test the cultural differences how direct impact on the M & A performance,and further makes an empirical study of the specific role of each dimension of cultural differences in indicators.In the end,we use group regression analysis to test whether cross-border M & A experience and industry relevance have a regulatory role.Through empirical research,this paper finds that the high probability of private enterprises’ cross-border M & A performance will create wealth for the shareholders,and in the long run,the cultural differences will have a negative impact on the M & A performance.However,the previous M & A experience and the industry relevance of the two parties have a regulatory effect and can effectively mitigate the negative impact of cultural differences.Finally,according to the result of the empirical research,the article puts forward corresponding policy recommendations to the government and private enterprises,hoping to help Chinese private enterprises better "go out" and provide practical reference value for strategic decision-making of cross-border M &A.The article takes the cross-border M & A activities of Chinese private enterprises as the main body of analysis,focusing on the impact of cultural differences on cross-border M & A performance,to make up for the other literature in the analysis of the relationship between the two,on the one hand,there is little distinction between state-owned enterprises and private enterprises,on the other hand,there are few cultural differences subdivided into specific dimensions for investigation.At the same time,based on the control variables such as the scale of enterprises,the scale of M & A,the proportion of shareholding,the method of M & A and the conditions of host country,this article also focuses on the adjustment of the relationship between the previous M &A experience and the inter-industry relevance.The paper introduces a regulatory effect model and tests its influence degree and direction on the relationship between cultural differences and M & A performance through group regression analysis.This is different from most of the existing literature on the relationship between cultural differences and M & A,more targeted and valuable in mitigating the negative impact of cultural differences;also expands the research perspective on the M & A performance of privateenterprises from the influencing factors and impact mode,which can provide practical and effective reference value for our private enterprises to carry out M & A activities in different cultural countries and regions better. |
