The Influence Of The CEO Turnover Of Target Enterprise On The International M&A Performance

In the studies of transnational M&A activities,the scholars of Corporate Governance Theory think that M&A is the punishment for the original management team by market,so it is necessary to replace the original management team,especially the CEO who is the core of the team,to improve the performance.However,in practice,there are cases where the CEO changed with a result of a poorer performance and where the CEO unchanged with a result of a better performance.Based on this,the author of this article try to explain the influence of the CEO turnover of target enterprise on the international M&A performance,based on LOF Theory and the perspective of legitimacy.In addition,the traditional theory of LOF mostly focused on the entry mode,payment method,location selection and so on,so this research will be a good supplement for the LOF theory.Based on the perspective of legitimacy,this article considers the CEO Turnover of'target enterprise as a cutting point,to analyze whether it will effect the international M&A performance.In addition,this research selects the quality of the host country's institution and the cultural strength of the acquirers as adjustment variables.At first,this article goes into detail about the process of the CEO Turnover causes the lack of legitimacy and reduces the international M&A performance.Combined with the quality of the host country's institution and the cultural strength of the acquirers,this article puts forward the research hypothesis and theoretical model.Secondly,this article determines the selection criteria and gets 40 available enterprises samples from the initial database of the Chinese listed companies which make cross-border M&A activities in 2008-2012.Then this article defines and measures the dependent variable,independent variables,adjust and control variables respectively and with the help of SPSS 19.0 software,this article makes linear regression testing step by step for the arranged data.Besides,in the testing process for the adjust variables,this article adopts the method of hierarchical regression analysis refer to the previous research.Finally,this article makes theoretical analysis and robustness test for the empirical result,and then get the research conclusion.This study proved that there is an obvious negative correlation between the CEO Turnover of target enterprise and the International M&A performance.What's more,the cultural strength enhances the correlation significantly.