Dose The Confucius Institute Enhance The Overseas Merger And Acquisition Of Chinese Enterprises?

Under the new situation,with the “going out” strategy and the deepening of the “Belt and Road” initiative,China actively promotes the development of foreign investment cooperation with countries along the “Belt and Road”,and Chinese companies are increasingly active in overseas mergers and acquisitions along the “Belt and Road” countries.At the same time,with the acceleration of the “going out” of culture,the role of cultural exchanges in promoting China's economy has become more apparent.The Confucius Institute is an important carrier for the communication of Chinese culture in the “Belt and Road”,and its positive role in the governance of regional economic and trade relations has become increasingly prominent.This paper focuses on the establishment of the Confucius Institute and explores the impact of cultural exchanges on the overseas mergers and acquisitions of Chinese companies along the “Belt and Road” countries.Based on the panel data of Chinese enterprises' overseas mergers and acquisitions along Belt and Road from 2006 to 2016,this paper theoretically analyzes and empirically tests the impact of Confucius Institutes' establishment on Chinese enterprises' overseas mergers and acquisitions.The results are indicated as follows:(1)The establishment of Confucius Institutes along the “Belt and Road” has a significant positive effect on the initiation of Chinese enterprises' outbound mergers and acquisitions;(2)The establishment of Confucius Institutes along the “Belt and Road” has a significant positive effect on the success rate of Chinese enterprises' outbound mergers and acquisitions;(3)There is regional heterogeneity in the influence of the Confucius Institute on China's overseas mergers and acquisitions along the “Belt and Road” countries.Compared with countries along the “One Belt”,those on “One Road” have gained more prominent effects from the Confucius Institutes on overseas mergers and acquisitions;(4)The influence of the Confucius Institute on the overseas mergers and acquisitions of Chinese enterprises in the countries along the “Belt and Road” has the heterogeneity of subject rights.Compared with non-state-owned enterprises,the willingness and success rate of state-owned enterprises to acquire overseas mergers is stronger.The establishment of Confucius Institutes has a positive positive effect on the overseas mergers and acquisitions of Chinese state-owned enterprises.(5)Among the countries along the “Belt and Road”,the economic “successive gradient” promotes overseas mergers and acquisitions of Chinese enterprises,and the Confucius Institute promotes the overseas mergers and acquisitions effect of Chinese enterprises along the “Belt and Road” countries in the economic “successive gradient” mergers and acquisitions;(6)Among the countries along the “Belt and Road”,the political “successive gradient” does not have a significant impact on Chinese companies' overseas mergers and acquisitions,nor does it significantly affect the effect of Confucius Institutes on Chinese companies' overseas mergers and acquisitions along the “Belt and Road” countries.The Confucius Institute not only promoted cross-cultural exchanges between countries along the “Belt and Road”,but also promoted economic and trade investment cooperation.At present,the Confucius Institute's foreign cultural exchanges are still mostly in the form of single-directional communication.The channels and mechanisms for bilateral cultural communication and exchange have not been perfected,yet and the multilateral cultural exchange mechanism needs to be further improved.At the same time,in the context of the global economic downturn and the great changes in the international economic governance order,Chinese enterprises' foreign investment development faces greater risks and uncertainties at the political and economic levels,and it is urgent for China to provide guidance and guarantees to improve risk prevention and control capabilities of Chinese enterprises.Based on the conclusions of theoretical analysis and empirical test,this paper proposes policy recommendations for Chinese companies to “go global” from both government and enterprise levels.China should constantly improve the multilateral cultural cooperation mechanism and cultural exchange platform,jointly seek similar cultural resources,carry out rich humanities exchange activities,and promote mutual understanding and integration of Chinese and foreign cultures.In the process of “Going Out”,Chinese enterprises should make full use of the advantages of cultural exchanges,vigorously promote cooperation with universities,strengthen international professional training,and enhance cross-cultural communication and investment factor integration capabilities of enterprises along the “Belt and Road”.