| Since the beginning of this century,Chinese enterprises have fully exerted the rapid development of the reform and opening-up system.The number of mergers and acquisitions has increased from 29 in 2004 to 431 in 2017,and the proportion of private enterprises in mergers and acquisitions has gradually expanded.In order to promote overseas investment activities,the Chinese government has signed bilateral investment agreements with 104 governments around the world since 1982.The contents of the agreement include national treatment,MFN treatment,fair and equal treatment and dispute settlement methods,which are conducive to protecting the rights and interests of both parties and promoting the achievement of transactions.So what are the factors that affect the success rate of overseas M&A in China? Can BITs adjust the system risks and increase the success rate of M&A?Based on the new institutional sociology and the Liability of Foreignness,this paper examines the impact of bilateral investment treaties on the success rate of Chinese companies’ cross-border mergers and acquisitions,and examines the regulatory effect of bilateral investment treaties on the impact of institutional risks on the success rate of Chinese companies’ cross-border mergers and acquisitions.An empirical test was conducted on 842 M&A samples from 72 host countries.The results show that A government with a high regular quality does not make crossborder mergers and acquisitions more successful,but it is not conducive to the conclusion of the transaction.The political stability of the host country have a significant positive impact on the success of overseas mergers and acquisitions by Chinese companies.The less interference the government has in investment behavior,the more likely it is that Chinese companies’ overseas mergers and acquisitions will succeed.The bilateral investment treaties has a negative impact on the success rate of Chinese enterprises’ cross-border mergers and acquisitions.However,in the test of regulation effect,it is found that the signing of bilateral investment treaties can significantly reverse the negative impact of institutional quality on the success rate of mergers and acquisitions.Therefore,the bilateral investment treaties has played a role in this process.This paper enriches the existing research on the institutional environment theory and institutional risk,clarifies the regulation and adjustment direction of bilateral investment agreements on institutional risks,and provides new ideas for the study of foreigner’s disadvantage theory.Finally,the conclusions drawn in this paper can give the government and enterprises the following enlightenment: First,the government should expand the coverage of bilateral investment treaties,especially those with high institutional risks.Bilateral investment treaties can effectively prevent the institutional risks of the host country and increase the success rate of crossborder mergers and acquisitions.Therefore,bilateral investment treaties cover countries with high institutional risks,and the provisions of pre-entry national treatment can be obtained to help enterprises achieve their strategic goals.Secondly,in overseas mergers and acquisitions,companies should consider the relationship between institutional risks,bilateral investment treaties and the success or failure of mergers and acquisitions.When enterprises face multiple investment targets,they should proceed from their actual needs,and adopt institutional risks,bilateral investment treaties,and strategies.The importance of assets is combined and considered comprehensively,and each investment target is sorted comprehensively to make reasonable decisions. |
PDF Full Text Request