Research On Cross-Border M&A Performance And Influencing Factors Of Airlines

Recently,on the international background of global economic integration and air transport liberalization,the wave of cross-border M&A began to sweep across all kinds of occupations,including aviation industry.Numerous foreign airlines have taken cross-border M&A as an important means of global resource allocation,and Hainan airlines has conducted cross-border M&A exploration in China,aviation industry has become a typical cross-border M&A battlefield in the service industry.However,does the massive cross-border M&A transaction really bring value growth to airlines? What is the influencing factors of crossborder M&A of airlines?It is researched that how is the cross-border M&A activities of global airlines in this paper.The evaluation index system of airlines’ performance of cross-border M&A is constructed,which is used to study the changes in airline’s cross-border M&A performance.Further,formal institutional distance,cultural distance,international M&A experience,payment method,degree of control,and M&A types whether affect airlines’ performance of cross-border M&A is studied.The empirical results show that in the short term cross-border mergers and acquisitions have improved airlines’ performance,in the long term the total performance of airline has been decreased after merger,showing the overall upward trend.The formal institutional distance has a significant negative impact on the performance of airlines’ cross-border M&A in the short term.The long-term formal institutional distance has little effect on cross-border M&A performance.Cultural distance that has a significant negative impact on airlines’ cross-border M&A performance both in the short term and long term.Cross-border M&A experience and type of M&A both have a significant positive impact on airlines’ cross-border M&A performance.The more experience of cross-border M&A,the better it is to improve cross-border M&A performance.Related M&A performance is significantly better than the hybrid M&A.It is not clear that the degree of control and payment methods have significant impact on the performance of airlines’ cross-border M&A.Thus,corresponding suggestions are as follows: reasonably select the target company,strictly abide by the institutional constraints of the host country,enhance the cultural integration ability,and actively summarize and promote the experience of cross-border mergers and acquisitions.