Research On The Impact Of Cross-border M&A On The Financial Performance Of Chinese TMT Enterprises

This paper mainly studies the impact of cross-border M&A on the financial performance of Chinese TMT companies.At present,as China's economic transformation and upgrading continue to deepen,the frequency of cross-border mergers and acquisitions of Chinese companies continues to rise,and the study of the performance of Chinese companies by cross-border mergers and acquisitions has become a hot topic in academic research.Under the background of China's industrial transformation and upgrading and the acceleration of 5G construction,China's TMT industry has experienced an accelerated pace of cross-border mergers and acquisitions and an irreversible trend.However,China's multi-dimensional regression analysis of financial performance of TMT companies after cross-border mergers and acquisitions is rare.Therefore,this paper has both theoretical and practical significance for the impact of cross-border M&A on the financial performance of Chinese TMT companies.In order to solve the problem that the model is distorted by the high correlation between the explanatory variables in the regression model,this paper considers the profitability,leverage,liquidity and management ability of the control variables as dependent variables respectively by excluding the methods causing the collinear variables.Sixteen multiple regression equations to ensure the robustness of the study results and reduce the likelihood of multicollinearity.The window period selected in this paper is three years before and after the merger.Since the latest available financial data is the financial data of 2018,this paper selects the Chinese TMT enterprises that have been cross-border M&A between 2010 and 2015,and chooses the profitability and leverage ratio.The four dimensions of liquidity and operational capacity empirically study the impact of cross-border mergers and acquisitions on the financial performance of Chinese TMT companies.The regression results show that cross-border M&A transactions have a significant negative impact on the profitability and operating capacity of Chinese TMT companies,but have no significant impact on the liquidity and leverage ratio of Chinese TMT companies.This paper supplements and enriches the impact of cross-border M&A on the financial performance of Chinese TMT companies in terms of theory and conclusions.