A Study Of The Impact Of The Host Country's Institutional Environment On The Performance Of Cross-border M&A

With the acceleration of economic globalization,more and more enterprises are implementing their own internationalization strategy through cross-border M&A to integrate themselves into the process of world economic integration.Cross-border M&A is an important way to implement the "going global" strategy.Since China joined the WTO,China's cross-border M&A have grown rapidly,the transaction size and transaction volume of cross-border M&A also have a rapid increse.However,the performance of cross-border M&A in Chinese enterprises is not satisfactory.For the reasons for the poor performance of cross-border M&A in China,many fail cases show that being unfamiliar and not to adapt to the host country's political,economic and cultural institutional environment is a main cause.Based on this,it is particularly important to examine the impact of the host country's institutional environment on the cross-border M&A performance.This paper first combs the relevant literature and theory,and then analyzes the current situation of cross-border M&A in China.On the basis of theoretical analysis and current situation analysis,the corresponding empirical research is done.The empirical research is divided into two parts.First,analyzing the performance of cross-border M&A by using the principal component factor analysis method.Second,making an empirical study on the impact of the host country's institutional environment on the performance of cross-border M&A by using the stepwise regression analysis method.In this part,it takes the performance score as the explanatory variable and the host country institutional environment as the explanatory variables,and the enterprise's own relevant factors as the control variables.The conclusions are as follows:(1)The impact of cross-border M&A on the performance of enterprises shows "V" trend,and the performance of enterprises has been significantly improved since the second year after M&A.(2)The overall institutional environment in the host country has a significant impact on M&A performance.Subdivided into perspectives,the host country's political institutional environment and the economic institutional environment have a significant and positive impact on M&A performance,the more perfect of the political institutional environment and economic institutional environment,the more conducive to the improvement of corporate M&A performance;host country's cultural institutional environment has no significant effect on M&A performance.2)Among the relevant factors of the enterprise,the experience of cross-border M&A has a significantly postive influence on the M&A performance.The previous M&A experience of the enterprise is conducive to the improvement of performance.The enterprise scale,enterprise age,the form of ownership of enterprises did not pass the test of significance,indicating that the performance of multinational mergers and acquisitions companies operating performance is too good and too not affected by these three aspects.Based on the above analysis,this paper puts forward the macro-level and micro-level policy recommendations for the cross-border M&A of Chinese enterprises.Macro-level policy recommendations are as follows:strengthening political interaction,economic exchanges and cultural exchanges with other countries;strengthening macro-coordination and guidance on cross-border M&A;improving the support system for overseas investment and improving the capability and level of cross-border security assurance.The policy recommendations at the micro level are as follows:scientifically formulating a strategic plan for cross-border M&A;fully understanding host country-related systems and laws and regulations;actively cultivating high-quality transnational M&A personnel;and attaching great importance to post-merger integration.