A Study On The Long-term Operation Performance And Its Influencing Factors Of Chinese Enterprises’ Transnational M&A

This paper takes China’s A-share listed companies’ transnational M&A as the research object Firstly,this paper reviews the theories of cross-border M&A,and puts forward five research hypotheses based on the analysis of theoretical models of cross-border M&A.Second,this paper evaluates the long-term business performance of Chinese enterprises in cross-border M&A.Thirdly,the performance evaluation results are taken as the explained variable to conduct an empirical study on the main factors affecting the performance of Chinese enterprises’ transnational M&A.DEA-Malmquist model is built based on data envelopment analysis method.This paper selecs cross-border M&A events of Chinese enterprises from 2006 to 2013 in Thomson Reuters financial M&A database,and strictly selects the cross-border M&A events successfully completed by 75 listed companies in 8 years as research samples.DEA-Malmquist performance evaluation index is used to evaluate the performance of transnational M&A three years before the success of M&A and four years after the success of M&A.The results show that in the first two years after the transaction,due to the existence of M&A integration,Chinese enterprises’ transnational M&A have caused significant wealth loss to the shareholders,and the company has realized wealth profit since the second year after the transaction.Next,the DEA-Malmquist performance evaluation index in chapter 3 was taken as the explained variable,and the main influencing factors of long-term business performance of cross-border M&A were studied by using multiple cross-section regression analysis.The results of regression analysis show that there is a significant negative relationship between the advantages of intangible assets or business performance before cross-border M&A and long-term business performance of enterprises in cross-border M&A.The relationship between the institutional gap or the transaction scale of transnational mergers and acquisitions and the long-term business performance of transnational mergers and acquisitions is significantly positive.Finally,the paper believes that enterprises should clearly formulate their own development strategies in advance,improve the level of operation and management,constantly learn from the advanced foreign institutional environment to acquire valuable knowledge and skills,gradually cultivate the specific advantages of enterprises,and finally form the sustainable global competitiveness.