The Influence Of Cultural Differences On The Performance Of Cross-border M&A

Under the background of economic globalization,China's foreign investment M&A activities have become increasingly active.Especially with the long-term accumulation and development of private enterprises in China,their own strength has gradually increased,so more private enterprises hope to participate in the international investment M&A market.It is expected to improve its own development mechanism through investment and mergers and acquisitions to promote its own development.According to relevant data,private enterprises occupy an important proportion in the new round of outbound investment mergers and acquisitions,and the trend of mergers and acquisitions has surpassed state-owned holding companies.However,the history and results of overseas investment and mergers and acquisitions by Chinese private enterprises are not satisfactory.Some private enterprises have not only failed to achieve the expected results through cross-border mergers and acquisitions,but also threatened the basic survival and development of enterprises.Cross-border M&A is like a sword of Damocles.Although it brings favorable resources such as market,technology and profit to Chinese enterprises,it also brings many difficulties and challenges.In this form,whether the enterprise can complete its own integration becomes the key point after the merger,and the important factor of cultural difference is the crowning touch in the process of merger and acquisition.Therefore,it is crucial for M&A companies to correctly treat and deal with cultural differences between countries or regions.At the same time,cultural differences have been listed as an important factor affecting the integration of multinational mergers and acquisitions in China's private enterprises,but they cannot be conclusively determined.The specific impact mechanism and degree of action need to be further explored and verified.Therefore,this paper aims to examine the impact of cultural differences on M&A performance through empirical research,so as to provide guidance for the implementation of private enterprises in cross-border M&A activities in China,and further enrich the relevant theories and experiences of cross-border M&A.In view of the above problems,this paper firstly uses macro and micro as the classification criteria to classify the factors that may affect the M&A performance,and analyze the internal relationship between cultural differences and cross-border M&A performance.Different from other articles that study the factors affecting performance,the research is more targeted and purposeful.It also expands the research horizon from the influencing factors of private enterprise M&A performance and its influence mode.In empirical research,this article is based on mainland China.72 cases of private enterprises' cross-border M&A events completed by private listed companies in 2008-2015 as a research sample,and selected from the one-year period before the merger to the three-year period after the merger as the sample inspection time window,during the measurement of the sample enterprise inspection period After relevant accounting indicators,the factor analysis method is used to comprehensively evaluate and analyze the accounting performance of sample enterprises,which not only supplements related research,but also makes up for the lack of distinction between state-owned enterprises and private enterprises when analyzing other relationships.Then,based on the performance level research,combined with the Hofstede model to obtain the cultural differences between the two countries or regions,using multiple regression models,the impact mechanism between cultural differences and cross-border M&A performance is carried out in different periods.Comprehensive empirical analysis and comparison.The empirical research results show that the overseas M&A results of private enterprises in China are not ideal.The accounting performance level of the company has been declining in the early stage.Until the three-year merger and acquisition period,the company's performance level has turned back,but it is still lower than the current performance level of M&A.In addition,the research results also show that cultural differences have not been significantly correlated with M&A performance in the short term,but are significantly negatively correlated in the long run;while other factors also have different effects on M&A performance.Finally,combined with the results of empirical research,it provides relevant reference opinions for the subsequent cross-border mergers and acquisitions of private enterprises in China.It is hoped that China's private enterprises will provide certain reference value in the process of formulating investment and integration strategies,so that Chinese private enterprises can better “go out”.