Research On Cross-border M&A Performance Of China’s Auto Industry

With the continuous development and growth of the world’s automobile industry,the automobile industry has gradually become a key industry in the world’s industrial economy.As early as last century,western countries have used cross-border mergers and acquisitions to build the structure of the world’s auto industry.At present,the world’s economic development has stagnated,and the problems in the long-term production and operation of the automotive industry have gradually emerged.The overcapacity of the industry and the impact of the world economy have brought the development of the auto parts industry to the automotive industry.The superposition of low service levels.In this context,cross-border mergers and acquisitions have become a major means to resolve overcapacity.In addition,the continuous tightening of emission regulations in various regions of the world,the cost of environmental protection has increased rapidly,new energy vehicles have entered a period of weak subsidies,and foreign traditional enterprises with strong technical reserves have further squeezed the market of domestic automobile companies.Under such circumstances,under the influence of its own needs and national policies,cross-border mergers and acquisitions will soon become the mainstream way for its breakthrough.However,at present,the success rate of cross-border mergers and acquisitions in China is not high,so research and analysis that affect the performance of cross-border mergers and acquisitions of China’s auto companies are essential.In addition,domestic scholars have not formed a unified opinion on the research of cross-border M & A performance.Therefore,under the premise of combining with the actual situation in China,the research on the performance of cross-border mergers and acquisitions in China’s auto industry has both theoretical and temporal significance.Firstly,this paper reviews the previous research results of cross-border M & a performance,and then combs the related concepts and theories of cross-border M & a performance.Secondly,from the perspective of politics,economy,culture and technology,this paper analyzes the development environment of China’s automobile industry,and expounds the development process and distribution characteristics of cross-border M & A in China’s automobile industry.Then,an empirical study was conducted on 18 cross-border mergers and acquisitions in 14 listed auto companies in China between 2005 and 2017 using accounting research.In empirical analysis,the article selects 12 financial indicators to carry out descriptive statistical analysis on cross-border M & A performance.After KMO inspection,6 financial indicators are selected for factor analysis,and the comprehensive performance score obtained by factor analysis is used as the basis.According to the two classification methods of M & A subjects and M & A methods,a comparative study is made.This article empirically points out the following conclusions: The overall cross-border M & A performance of China’s auto industry is not satisfactory,but not every cross-border M & A event ends in failure.Overall,more than 28% of enterprises have benefited from the process of cross-border M & A integration..Generally speaking,the performance of cross-border mergers and acquisitions of private enterprises is generally higher than that of local state-owned enterprises,and the performance of vertical mergers and horizontal mergers and acquisitions are better than the integration benefits of hybrid mergers and acquisitions.In the context of M & A,strategic integration,technology integration,and cultural integration must be emphasized.Finally,based on the analysis results of empirical,the paper proposes countermeasures for cross-border M & A of Chinese automobile companies from the government and enterprise levels.