The Influence Of National Cultural Differences On The Performance Of Cross-Border M&As

In recent years,the number and scale of cross-border M&As activities of Chinese enterprises have been significantly increased.One reason why M&As can be favored by enterprises is that it can bring resources and technologies that enterprises do not have,avoid trade barriers and make resources allocated effectively.The other reason is that it can reduce the cost of enterprises and improve the efficiency of resource utilization.Enhance the core competitiveness of enterprises.However,after cross-border M&As,enterprises may face a completely different economic system and cultural environment from their own countries.In this case,enterprises will face the double risks of M&As and cultural integration.The existence of cultural differences increases the difficulty of cultural integration.Most scholars believe that cultural differences will make enterprises face double challenges from resources and technology,thus affecting the performance of transnational mergers and acquisitions.This paper aims to enrich the theoretical knowledge of cross-border M&As of Chinese enterprises by exploring the mechanism of the impact of national cultural differences on the performance of cross-border M&As,and to provide guidance for cross-border M&As activities of Chinese enterprises.Therefore,from the perspective of many factors affecting the performance of transnational mergers and acquisitions,this paper reviews the relevant studies on the national cultural differences and the performance of transnational mergers and acquisitions at home and abroad,uses the theory of cross-cultural management and organizational learning,and combines the methods of literature research and empirical research to study the impact of cultural differences in different countries on the performance of transnational mergers and acquisitions of Listed Companies in China.It further explores the moderating effect of the size of the merger and acquisition company and the industry correlation on the relationship between the two.Firstly,based on the literature review and theoretical analysis,three hypotheses are proposed.The cross-border M&As cases of listed companies in China from 2012 to 2015 are taken as samples,and then the regression analysis is carried out by combining Stata and Excel software.For the measurement of national cultural differences,this paper mainly proposes the measurement model based on Hofstede's national cultural dimension theory.For the measurement of cross-border M&As performance,this paper mainly adopts the accounting research method to calculate the performance level of 0-2 years after M&As.Through multiple regression,we study how national cultural differences affect the performance of cross-border mergers and acquisitions,and the adjustment of the relationship between the size of the merger and the industry and the industry.Through the research,this paper finds that:(1)National cultural differences have a significant negative impact on the performance of cross-border M&As in China;(2)When the size of the M&As firm is larger,it will significantly reduce the negative impact of national cultural differences on cross-border M&As performance.(3)When both parties to the merger belong to the relevant industry,it will significantly reduce the negative impact of national cultural differences on the performance of cross-border mergers and acquisitions.