The Research On The Impact Of Cultural Distance On Synergy Of Cross-border M&As Of Labor-intensive Enterprises In China

As cross-border mergers and acquisitions have become the main measure for the internationalization of labor-intensive enterprises in China,and the cultural distance between the target company’s host country and China is obvious.Therefore,it has significant theoretical and practical meaning to discuss the impact of cultural distance on effectiveness of cross-border M&As of labor-intensive enterprises in China.This paper firstly gets the theoretical basis that cultural distance influences managerial,operating and financial synergy of cross-border M&As by sorting and summarizing related literature.Based on this,constructs the quantitative model for managerial,operating and financial synergy of cross-border M&As.Next,proposes the research hypotheses by combining the characteristics of labor-intensive enterprises in China and the analysis of targets for their cross-border M&As.The next step is constructing the multiple regression model of this paper and executing the descriptive statistical analysis of the sample and regression analysis of the model.Finally,according to the result of research,explaining hypotheses,drawing the conclusion and offering the proposal.The conclusion of this paper is that the cultural distance has a significant positive effect on the managerial and operating synergy and no significant effect on financial synergy of cross-border M&As of labor-intensive enterprises in China.