The Impact Of Transnational Mergers And Acquisitions On The Performance Of Chinese Enterprises

After the reform and opening up,China's economy has developed at a rapid pace,gradually integrating with the world economy,and making tremendous contributions to the development of the world economy.With the rapid development of China's economy,more and more Chinese companies are active in the world,and cross-border mergers and acquisitions are the most effective and fastest way for companies to go abroad and invest overseas.As well as an important path for the development of globalization.At the beginning of the 21 st century,with the development of China's “going out” development strategy and the introduction of relevant favorable policies,the pace of overseas mergers and acquisitions by Chinese companies has gradually accelerated.Especially after the global financial crisis broke out in 2008,Chinese companies seized the opportunity to vigorously acquire global quality assets.Cross-border mergers and acquisitions have made long-term development both in the number of enterprises and in the amount of mergers and acquisitions.However,compared with domestic mergers and acquisitions,crossborder M&A is a more complicated economic activity.There are more factors to consider and more risks to be taken.A little carelessness often leads to mergers and acquisitions in business difficulties.So,can cross-border M&A improve the business performance of the company? What other factors will affect the performance of cross-border mergers and acquisitions? How should companies improve their performance in cross-border mergers and acquisitions? And so on are all issues that Chinese companies must consider when conducting cross-border mergers and acquisitions.Based on the 269 cross-border M&A events of China's Shanghai and Shenzhen listed companies during 2010-2016,this paper reviews the domestic and international cross-border M&A research results,and combines the characteristics of Chinese enterprises' cross-border M&A to select multiple financials from different angles.The index uses factor analysis to construct comprehensive performance evaluation indicators.The preliminary analysis shows that after cross-border mergers and acquisitions,the companies with increased performance increase year by year.Then,the related variables are selected from the microscopic point of view to establish a multiple linear regression model to analyze the impact of different factors at the micro level of the M&A process on the performance of cross-border M&A.Through empirical research,it is found that the nature of the company's ownership affects the performance of the enterprise in the year of merger and acquisition and the two years after the merger,that is,the performance of cross-border mergers and acquisitions of private enterprises is better than that of state-owned enterprises;the scale of the enterprise for three consecutive years positively affects the performance of mergers and acquisitions;The ratio of total assets to the total assets has also positively affected the company's M&A performance for three consecutive years,and the impact is relatively large;the industry correlation and trading equity have no significant impact on M&A performance;the ratio of M&A to current assets is in the current year and after the merger.One year negatively affects corporate performance,and the impact of M&A performance in the last two years is not significant.Finally,combined with the results of empirical analysis and the characteristics of crossborder mergers and acquisitions of listed companies in China,we provide relevant suggestions from the aspects of improving relevant national policies,cultivating corporate global thinking and strengthening the risk of preventing mergers and acquisitions,which provides a certain reference for Chinese enterprises to engage in cross-border mergers and acquisitions.