The Influence Of Executives' Overseas Background Of China's Listed Enterprises On The Performance Of Cross-Border Mergers And Acquisitions

As the economic globalization and the call from the Chinese government,one hand is the continuous “go out”Chinese enterprises;on the other hand,more and more excellent talents with oversea background are coming to China's labor market,offering them high rank and high salary jobs.For Chinese enterprises to go out,the fastest and the most effective method is Cross-border Merger and Acquisition(Cross-border M&A),M&A is a important strategy for enterprises to bring about rapid expansion and leaping development.But comparing to the M&A boom,both number and amount of money of M&A is increasing every year,the fact is the effective rate of cross-border M&A is only 33%,.Weighted cross-cultural integration factors,less than 20% of cross-border M&A can be truly successful.Therefore,how to rationally and effectively use cross-border mergers and acquisitions to “go out”,achieve economic restructuring and industrial upgrading,and improve the corporate governance structure have always been an important issue to the government,the management team and scholars.At the same time,the management team,as the core group of decision-making,relates to the formulation and implementation of various decisions such as corporate investment,management,and future paths.It runs through every aspect of the company's business management and influences whether the company can make profits.Because of these important factors,the academic research on the top management of enterprises has a long history.This article will focus on researching individual characteristics of senior executives.Executives with overseas backgrounds will,they have a better international vision and resources through comparison,and they can use advanced technology and experience to help Chinese companies break through the "constraint".This thesis mainly studies the influence of executives' overseas background on theperformance of cross-border mergers and acquisitions of companies,and adopts scientific methods such as literature research and empirical research methods.Based on past scholars' research and the current background,this thesis selects the cross-border M&A events from 2010 to 2014.There were a total of 141 listed companies,and the performance observation period was from the year when M&A happened to the third year.A total of 1,385 personal data were selected from senior executives of these companies,including 11 companies that have foreign executives.According to the specific situation,divide the oversea background into three kinds,oversea study(SeaS),oversea work(SeaW)and foreigner(SeaF).then according the M&A object setting oversea background match rate(SeaR).Using different index to measure cross-border M&A short-term(ROA)and long-term performance(Tobin's Q).Setting control variable such as Return on Total Assets and Operating Cash Flow Ratio.According to research design,bring forward seven hypotheses,modelling.In the end,use Excel and SPSS19 to analysis.There are seven hypotheses in this article,four of them are true.Through research,this article has two conclusions.First,different overseas backgrounds have different effects on the performance of cross-border M&A.in one word,the oversea backgrounds of senior executives have a strong negative impact on cross-border M&A performance,and have a weak positive impact on long-term performance.Secondly,the oversea background match rate of senior executives' is very important.Backgrounds that are not relevant to cross-border M&A have no obvious role in helping companies' cross-border M&A performance.In the end,the paper puts forward some suggestions based on the conclusions.It hopes to provide reference for the talent development strategy of the government and enterprises.At the same time,it also points out the defects of the data and model in this paper.I hope scholars who study in this field can solve these problems in the future.