Executives' Overseas Experience And Corporate M&A Performance

With the introduction of the "13th Five-Year Plan",national strategies such as"Internet "Belt and Road",deepening financial system reform,industrial transformation and upgrading have been implemented successively,the national economy has achieved steady growth,and the M&A market has also shown a continuing hot trend.In 2016,the supply-side reform focusing on "three to one,one reduction and one supplement" once again set off the merger and acquisition trend.In addition,China's national strength,economic growth,social stability and economic globalization have made China's "talent magnet" effect more obvious,and it is the background of this large-scale "sea returning tide".Some national policies provide a large number of employment opportunities for returnees.The number of returnees in China has gradually surpassed the number of people studying abroad,from the "study deficit" to the "study surplus",and this gap is obviously increasing.Therefore,in the background of the large-scale mergers and acquisitions boom and the growing number of "sea turtles",it is very important and meaningful to study the impact of overseas experience of executives on corporate M&A performance.This paper takes the M&A event of listed companies as the acquisition target in the Shanghai and Shenzhen A-share market from 2007 to 2014 as the original sample,explores the impact of executives' overseas experience on the performance of M&A,and then we discuss the intermediary role of M&A integration and overconfidence between executives'overseas experience and corporate M&A performance;We further study the impact of executive overseas experience on M&A performance in different M&A types.Finally,based on the disadvantages of executives' overseas experience,this paper introduces two variables of property rights and political connections,and study the impact of executives on M&A performance when executives both have overseas experience and local resources.Through the empirical test,the conclusions are as follows:(1)Executives' overseas experience has significantly improved the performance of M&A,M&A integration ability and overconfidence is a partial mediator in it;(2)Compared with domestic M&A and non-related M&A,the impact of executives' overseas experience on M&A performance is more pronounced in overseas M&A and related M&A;(3)Compared with non-political affiliates and private enterprises,the impact of executive overseas experience on M&A performance is more pronounced in politically affiliated and state-owned enterprises.Compared with the existing literature,this paper takes the overseas experience as the breakthrough point,which enriches the research of the characteristics of executives affecting the M&A performance of enterprises.At the same time,further research on the intermediary effect of M&A integration ability and overconfidence enrich and deepen the influence mechanism of executives' overseas experience on M&A performance.Finally,based on the advantages and disadvantages of executives' overseas experience,we research the effect of M&A types and enterprise characteristics,which not only help us better assess the economic effects of executives' overseas experience,but also guide the improvement of corporate M&A performance.