Research On The Influence Of Liability Of Foreignness On The Overseas M A Performance Of Chinese Listed Companies

After the global financial crisis in 2008,the pattern of many industries worldwide was facing a global shift,and overseas investment of Chinese companies also showed explosive growth after the economic crisis.However,from the perspective of the total amount of the economy,overseas mergers and acquisitions of Chinese companies are still in their infancy and face a complex international environment.In the process of overseas mergers and acquisitions,due to differences in areas,systems,economy,and culture,acquirers are in a disadvantaged position in the competition and need to pay extra economic costs.This is called “Liability of Foreignness”.This article is divided into five chapters.The first chapter is called the background and significance of the liability of foreignness on the overseas M&A performance of Chinese listed companies.The second chapter is called the theoretical overview of the liability of foreignness and international M&A.The third chapter is called the status quo of overseas M&A of Chinese listed companies.The current status of overseas mergers and acquisitions of Chinese listed companies and their trends of future development are analyzed mainly from the perspective of total scale,country,industry,and enterprise.From the diversified perspective of liability of foreignness,including both the lack of legality and information asymmetry,the fourth chapter takes 124 Chinese listed companies with overseas mergers and acquisitions from 2008 to 2015 as samples to make the empirical test by using SPSS software to adopt the idea of multiple regression and classification.The empirical results show that the absence of regulatory legitimacy in the liability of foreignness has a significant negative impact on M&A performance,but the lack of normalized legitimacy,lack of cognitive legitimacy,and information asymmetry have no significant effect on overseas M&A performance.In this paper,the age,industry similarities,and equity ratios are used as control variables to study the effects of cultural exchange,M&A experience,the concentration of firm factors,and nature of the industry on the impact of the liability of foreignness.The research results show that cultural exchanges can promote the overseas M&A performance of enterprises,but cannot weaken the impact of the liability of foreignness on overseas M&A performance.And the overseas M&A experience of enterprises can promote the overseas M&A performance of enterprises,and weaken the impact of liability of foreignness on overseas M&A performance.And the factor concentration of firms can weaken the impact of the liability of foreignness on overseas M&A performance: resource-intensive firms have the best effect of weakening,followed by labor-intensive firms and once again capital-intensive firms,with the weakest effect of technology-intensive firms.And the nature of the industry can weaken the impact of the liability of foreignness on overseas M&A performance,and the weakening effect of the service industry is greater than the weakening effect of the manufacturing industry.In the last chapter,according to the status quo and empirical results of overseas M&A of Chinese listed companies,from the state and company level,the corresponding feasible suggestions are proposed.