The Impact Of Cultural Differences On The Performance Of Chinese Listed Companies In Cross-border Mergers And Acquisitions

Recently years,the "Go global policy" has shown a new image.Chinese companies are moving up to the global value chain.As an important means of overseas resource allocation,cross-border M&A can provide resources,advanced technology and management experience for Chinese companies.Due to cultural differences,corporate need cultural integration after the M&A.As an important part in M&A integration,cultural integration is considered to be the key to determining the success of M&A integration.Regarding the impact of cultural differences,most scholars believe that cultural differences will increase the possibility of cultural conflicts between both sides,it interferes with cooperation and increases the cost of merger and acquisition,and thus have a negative impact on enterprise performance.While some foreign scholars think that the greater the cultural difference is,the stronger the complementarity of the two sides will be,not only in terms of knowledge,but also of skills and habits,which can enhance the competitiveness after mergers and acquisitions and further improve the performance of the company.There are also several studies suggesting that the relationship between cultural differences and m&a performance is not significant.In conclusion,this paper aims to investigate the impact of cultural differences on the performance of Chinese enterprises in cross-border m&a on empirical research with empirical research method.On this basis,this paper examines the moderating effect of past experience,industry relevance,technological change characteristics,and factor characteristics so as to provide a reference for Chinese companies with to formulate investment and integration strategies when conducting cross-border mergers and acquisitions.In theoretical research,this paper analyzes the relationship between cultural differences and cross-border M&A,as well as and analyzes other factors which affect cross-border M&A performance at three levels: country,enterprise,and M&A process.In terms of empirical research,this paper takes China's listed companies as the research object,and selects 90 of the cross-border M&A events of listed companies from 2013 to 2015 to be research samples.By using the Hofstede model to measure cultural differences,use the long-term event research method to measure the M&A performance,the multiple regression model was used to test the direct impact of cultural differences on the M&A performance.On this basis,the impact of industry correlation,experience,characteristics of technological change,and factor characteristics on the relationship between cultural differences and corporate M&A performance was examined.The results of this research show that the impact of cultural differences on firm performance is negative in the long run,but as time goes by,the negative impact is weakened.The industry correlation,the experience and the characteristics of technological change have a significant effect on the relationship between cultural differences and M&A performance.Based on the empirical results,this paper proposes strategies and recommendations for the government and enterprises.