The Empirical Study On The Motivations And Performances Of Overseas Mergers And Acquisitions For Chinese Resource-based Enterprises

In this paper,64 overseas merger and acquisition(M&A)cases of Chinese resource-based enterprises during 2007-2015 are selected as the samples to study overseas M&A motivations,performance and influence factors of Chinese resource-based enterprises from multiple dimensions such as theoretical analysis and empirical analysis.This study is mainly carried out following the four steps.Firstly,statistical analysis is carried out for the times,scale,enterprise types,overseas M&A purposes,and overseas M&A modes of Chinese resource-based enterprises.On the basis of statistical analysis,six major motivations of M&A are further extracted,including pursuing brand effect,market share,strategic resources,salary and administrative incentive,scale effect and reducing operational risks.Besides,empirical test is conducted to verify whether Chinese resource-based enterprises implement overseas M&A for the purposes of pursuing good salary,promoting scale effect and reducing operational risks.Secondly,factor analysis is applied to construct a set of M&A performance appraisal system and test overseas M&A performance of Chinese resource-based enterprises.Finally,the specific factors influencing overseas M&A performance of Chinese resource-based enterprises are further explored.The research conclusions are drawn as follows.Firstly,in the aspect of merger and acquisition motivation,no evidence shows enterprises' M&A behavior improves salary level of the enterprises' senior executives,but the M&A behavior brings scale economies effect for enterprises,increases liquidity ratio of enterprises significantly and reduces operational risks of enterprises.Secondly,in terms of M&A performance,the empirical results indicate that overseas M&A behavior of Chinese resource-based enterprises fail to improve financial conditions of enterprises.On the contrary,it results in the decline of enterprises' financial conditions.Thirdly,M&A experience,energy price change rate and relative M&A scale present negative correlation with M&A performance,in terms of the factors influencing M&A performance.