Research On The Impact Of CEO's Overseas Background On The Success Of Overseas M&A

In recent years,overseas M&A as one of the most important international means of business has sprung up and flourished.However,most of the M&A results were not satisfactory.The success rate of M&A was lower than the global average.Nearly 50% of overseas M&A have not been successful for various reasons.Therefore,it was widely concerned by scholars.At present,the academia mainly discussed the influencing factors of the success of overseas mergers and acquisitions from the macro level and the micro level,but at the micro level,the role of senior executives in decision-making bodies within the enterprise is neglected.In addition,the existing research generally discussed the overseas background of all senior executives,has not distinguished between CEO executives and non-CEO executives.In response to this shortcoming,this study based on the Upper Echelons Theory and institutional factor theory and used a sample of 256 Chinese companies' overseas mergers and acquisitions events in the Zephyr database from2010 to 2016,empirically analyzed the impact of CEO's overseas background on the success of overseas mergers and acquisitions by using STATA13.0 software,and further examined the impact of CEO's overseas academic background and CEO's overseas work background on the success of overseas mergers and acquisitions.Since 2012,overseas mergers and acquisitions of Chinese enterprises have become more and more inclined to Western developed countries.Cultural differences are also considered to be the main factors leading to the failure of overseas mergers and acquisitions.So this study introduced cultural differences as a moderating variable to explore the moderating effect of the relationship between overseas background of CEO and success of overseas mergers and acquisitions.The study found that CEO's overseas background helped overseas M&A success;CEO's overseas academic background had a significant positive impact on overseas M&A success;CEO's overseas work background had a positive impact on overseas M&A success but is not significant;When considering cultural difference,the cultural difference weakened the positive influence of overseas background of CEO on success of overseas M&A.The research conclusions of this study provided empirical evidence for China's “going out” strategy and “overseas talent introduction” strategy,and it provided a reference for overseas mergers and acquisitions.