Company Internationalization Level,Cross-border M&A Premium And M&A Performance

With the gradual opening of the capital market and the general trend of economic globalization,more and more companies choose Cross-border M&A as a means of acquiring advanced resources and technologies.According to PWC,in 2012,Chinese companies implemented 191 Cross-border M&A,totaling $55.4 billion.By 2016,Chinese companies had implemented 923 Cross-border M&A,totaling $220.9 billion.In the process of Crossborder M&A,the formulation of transaction prices is often one of the issues that are of great concern to both parties.In the implementation of M&A,both parties often conduct preassessment of the relevant assets of the target company,and thus determine the price of the M&A transaction.It is concerned that Cross-border M&A implemented by Chinese companies often have high M&A premiums.According to the statistical results of CSMAR: the average value of Cross-border M&A premiums of listed companies in China for the period of 2012-2016 is 497.49%,and the difference is very large.The highest premium is 8557.06%.The phenomenon of China's high premium will continue.Moreover,in the process of Cross-border M&A,the degree of internationalization of M&A companies will largely affect the final benefits of M&A.Therefore,this paper takes the relationship between Cross-border M&A premium and M&A performance as the main research line,analyzes the economic consequences brought by the Cross-border M&A premium,and the influence of the degree of internationalization of the company on the relationship between Cross-border M&A premium and M&A performance.At the same time,in further analysis,this paper introduces The Belt and Road background,compares the relationship between the Crossborder M&A premium and the M&A performance before and after The Belt and Road policy,and the impact of the degree of internationalization on the relationship between the two.This paper mainly takes 366 listed companies that have implemented Cross-border M&A in 2012-2016 as research samples,and grouped them according to The Belt and Road strategy,and obtained 163 and 203 samples respectively.Through empirical analysis,it is found that: Firstly,the Cross-border M&A premium has a significantly positive correlation with M&A performance.The Cross-border M&A premium has a certain signal effect on M&A performance.The Cross-border M&A premium can reflect the expected synergy brought by Cross-border M&A,that is,the higher the Cross-border M&A premium,the greater the synergy value generated after M&A,the improvement of corporate performance has a positive effect and contributes to the creation of the value of M&A corporate.Secondly,the degree of internationalization of the company is significantly positively correlated with the Cross-border M&A premiums and M&A performance,indicating that the degree of internationalization of the company has a significantly positive impact on the relationship between Cross-border M&A premiums and M&A performance.Thirdly,after introducing The Belt and Road background,it is found that the positive relationship between Cross-border M&A premium and M&A performance is more significant after its implementation.Moreover,the degree of internationalization of the company has a more positive effect on the relationship between the Cross-border M&A premium and the M&A performance after The Belt and Road policy.This paper takes the Cross-border M&A of listed companies as the main body of analysis,which is in line with the current background of economic globalization.On this basis,the analysis of the economic consequences of Cross-border M&A premiums and the impact of the degree of internationalization on the relationship between Cross-border M&A premiums and M&A performance is an extension and supplement to the research on Crossborder M&A,and also enriches related literature of the degree of internationalization of the company.At the same time,the research of this paper considers the special background of the current The Belt and Road.Based on this background,the relationship between Crossborder M&A premium and M&A performance is analyzed in more detail,which also provides useful information for The Belt and Road related literature.In addition,the research in this paper provides guidance for the formulation of the Cross-border M&A strategy of listed companies and the improvement of corporate governance structure,and also provides policy recommendations for the supervision and investigation of relevant institutions.