A Research Of The Factors Influencing The Choice Of Cross-border Mergers Or Strategic Alliances By Chinese Automotive Corporations

After years of development,China’s auto companies have made considerable progress.The domestic auto market’s production and sales continue to get high levels.However,it cannot be ignored that China’s auto companies still have a large gap with world-renowned auto groups in terms of technology,scale and human resources.The traditional growth strategy has been difficult to realize the redevelopment and upgrading of China’s auto companies.At present,the global manufacturing industry is constantly becoming more intelligent,automated and sophisticated.In response to the situation,the national strategy of China Made 2025 also sets new requirements for the automotive industry.Chinese auto companies should “go out” in order to1 accelerate their industrial upgrading.The new type of exogenous development strategy represented by cross-border mergers and acquisitions and strategic alliances has become an inevitable choice.At the same time,companies are also facing choices between the two strategies.The research on the factors affecting Chinese auto companies’ choice of cross-border mergers and acquisitions or strategic alliances has important guiding significance for the analysis of the reliability of related decision-making.According to the review of relevant literature,it has been found that the research on the path of auto companies choosing cross-border mergers and acquisitions or strategic alliances is rare,and the existing research has not yet reached a unanimous conclusion.The purpose of this paper is to analyze the decision-making influencing factors of whether Chinese auto companies choose cross-border mergers/acquisitions or strategic alliances from the theoretical and empirical perspectives,and make reasonable suggestions for decision-making.The article first gives the definition of cross-border mergers/acquisitions and strategic alliances and related theories,including the motives,strategies,risks of the cross-border mergers/acquisitions,the motives,types,and governance of the strategic alliances,and focuses on theories of whether companies choose cross-border mergers/acquisitions or strategic alliances;Analyze the status quo and existing problems of China’s auto companies’ cross-border mergers/acquisitions and strategic alliances.Finally,a sample of 33 cross-border mergers/acquisitions and strategic alliances of 23 auto companies listed in Shanghai or Shenzhen during 2010-2016 was taken as a research sample.Through the establishment of model regression analysis,the following conclusions were obtained:Stronger management ability or stronger equity financing ability means the Chinese auto companies are more inclined to cross-border mergers/acquisitions in their strategic choices.The relevant historical experience,the level of technology of the enterprise,the scale of the company,and the geographical differences between the two parties will not have a significant impact on the choice of cross-border M&A or strategic alliances.