Research On The Factors Influencing The Success Rate Of Chinese Enterprises' Cross-Border M&A

Under the current economic situation,with the process of economic globalization,the ties and dependence of economic among various countries are also on the increase.In the midst of the tortuous recovery of global FDI,China's foreign direct investment has been in growth all the way.At the same time,cross-border mergers and acquisitions surged sharply and became the world's No.1 takeover country in 2016 for the first time,indicating that Chinese enterprises have begun the irreversible international strategic layout.With the huge potential opportunities brought about by the "One Belt and One Road",Chinese enterprises will also have a bright future on the road of "going global." From the point of data,cross-border mergers and acquisitions by Chinese companies have both risen sharply over the past few years,both in terms of the number of transactions and the volume of transactions.However,their merger success rate is much lower than that of the world.Therefore,The factors affecting the success or failure of cross-border M&A is worth studying.In the part of theoretical research,the paper has sorted out relevant theories on foreign direct investment and cross-border M&A from three aspects:motivation,influence mechanism and performance,and introduced the mainstream theories such as monopolistic advantage theory,internalization theory,international production eclectic theory,marginal industrial transfer theory and so on.The statistical analysis section divides China's transnational mergers and acquisitions into four stages,detailing the m&a volume and acquisition characteristics of each stage.In the empirical part,according to the relevant theoretical foundation,the paper constructs a nonlinear logistic model that includes three levels:countries,industries and enterprises.By introducing new variables such as political environment differences,"One Belt and One Road" and business conditions,while widening the traditional sensitive industries to transportation,publishing media,the public service and financial insurance industry.It also introduces interactive items between the sensitive industries and the ownership of the enterprises and the state of the enterprises,and explores their impact on the success rate of cross-border M&A.The results show that the "One Belt and One Road" policy has a positive effect on the success rate of cross-border mergers and acquisitions in China.The operating conditions of the target enterprises also affect the success rate of mergers and acquisitions.Those who do not manage well tend to be more likely to be acquired,but when it involves sensitive industries and state-owned companies,the success rate of mergers and acquisitions will be negatively affected.In addition,based on the research of the two interactive items,it also confirms that a sensitive industry will increase the difficulty of the state-owned enterprises' transnational merger and acquisition,and its negative effect on transnational mergers and acquisitions cannot be offset by the operating status.Through theoretical and empirical research,this paper holds that Chinese enterprises in the process of cross-border m&a should formulate a detailed strategic plan,with the help of a professional team to do due diligence,and weaken the host country's political hostility.They should be more cautions and rational in their choice of industries.At the same time,enterprises should strengthen their core competencies and enhance their competitiveness before they "go globally".