A Study On The Total Factor Productivity Of Cross-border M & A Of Chinese Private Enterprises

Along with the rapidly development of the worldwide economic globalization,there are more and more Chinese enterprises stepping on the road of cross-border mergers and acquisitions(M&A).At the same time,private foreign investment plays an increasing important role in overseas M&A,and for the first time it exceed state-owned enterprises with almost twice in quantity.The main reason that more and more Chinese enterprises go abroad is that they faced the need of industrial upgrading in home,so it has aroused extensive attention whether the private enterprises can improve the productivity and promote industrial upgrading through cross-border mergers and acquisitions,as well as which are the main factors that affect the productivity.With the development of private enterprises these problems has attracted increased attention of scholars both at home and abroad.Therefore,this paper attempt to analyze the impact of cross-border mergers and acquisitions on the productivity of private enterprises and to find out the main factors that affect the result.In the end,we will provide theoretical guidance for Chinese private enterprises based on our study.Different with other papers,the contributions of this paper are as follows: firstly,other than focus on the performance of Chinese enterprise,we focus on the TFP of enterprise,this give us a better answer whether Chinese enterprise has acquired advanced techniques and improved their core competitiveness through cross-board M&A.Secondly,this paper focus on the analysis of cross-border merger and acquisition of private enterprises,it makes up for that other documents don't make a distinction of state-owned enterprises and private enterprises when they study this kind of problems.Lastly,this paper offers an objective assessment of the performance of Chinese private enterprises M&A from a micro perspective in 2009-2013,which fills the blank of the study from Chinese experience.This paper examines the impact of cross-border M&A on enterprise productivity using data from 65 Chinese private enterprises that engaged in cross-border M&A activities during 2009-2013.We found that cross-border M&A significantly increased the productivity of private enterprises,and the effect became more and more obvious with the passage of time.The enterprise's own absorptive capacity has a great influence on the productivity effect of the M&A,and an M&A has a more obviouseffect on an enterprise with a stronger absorbing ability.We offer an objective assessment of the performance of Chinese private enterprises M&A from a micro perspective and policy implications for China's international business and investment strategy.