A Study Of The Impact Of Executives’ Overseas Backgrounds On Multinational M&A Innovation Performance

With the continuous deepening and development of economic globalization,Chinese enterprises are also constantly exploring the further integration with the world economy.Transnational mergers and acquisitions with listed companies as the main body have become an important form of rapid expansion of Chinese enterprises to the world stage.Nobel laureate in economics,George Stigler,a famous economics professor at the University of Chicago,once pointed out that most large companies in the United States have achieved scale expansion through mergers and acquisitions of a certain degree and in a certain way,rather than relying solely on them.Its own accumulation further illustrates the importance of mergers and acquisitions for the rapid expansion of enterprises.For more than 40 years of reform and opening up,Chinese companies have gradually implemented the "go global" strategy in more and more overseas mergers and acquisitions.Overall,the overseas merger and acquisition market of Chinese companies has shown a rapid growth trend,achieving one after another.Record-breaking overseas mergers and acquisitions.From the statistics of Zero2 IPO Private Equity on overseas mergers and acquisitions of Chinese enterprises,both the number of M & A transactions and the amount of M & A transactions have shown a continuous growth trend,and experts expect that they will continue to grow in the future.The deep-seated reason for exploring the continuous growth of multinational mergers and acquisitions is due to the highlight of technological innovation capabilities in the competitiveness of enterprises.The purpose of improving innovation capabilities and broadening overseas markets.However,compared with developed countries,China’s overseas mergers and acquisitions are still in the primary stage of development.After performance.This is because the main merger company’s path to improving innovation performance after the merger is not yet clear,and it cannot effectively integrate external advanced resources into the company’s own core competitiveness.In fact,not all cross-border mergers and acquisitions can achieve the purpose of breaking through the technical bottleneck.There are also many cases of failed mergers and acquisitions like TCL mergers and acquisitions in Alcatel,France.It can be seen that the road chosen by Chinese enterprises is not smooth,and not all enterprises can systematically and systematically acquire advanced technological knowledge and improve technological innovation performance from the merger and acquisition process.At present,the academic community mainly discusses what kind of environment and corporate characteristics will promote innovation performance after overseas mergers and acquisitions from the macro level and the micro level,but it ignores the role of executives within the corporate decision-making body;in the characteristics of executives,most studies only consider Ignoring the demographic characteristics such as gender and age,and ignoring the overseas background characteristics of executives;in cross-border mergers and acquisitions,on the one hand,executives with overseas backgrounds are often different from local executives due to the influence of foreign cultural systems.The unique insights and overseas social relations have a prominent impact in corporate decision-making;on the other hand,the overseas background of executives can reduce the information asymmetry caused by the differences in the cultural environment of the two parties,and it is more conducive to promoting the industry after the merger.Integration has a positive impact on innovation performance.Therefore,it is of great practical significance to study whether executives with overseas experience will significantly affect the innovation performance of enterprises after cross-border mergers and acquisitions.Therefore,this paper studies the cross-border mergers and acquisitions incidents of A-share listed companies in China’s Shenzhen and Shanghai stock markets from 2009 to 2015.Through the establishment of regression models and empirical analysis,it focuses on whether the overseas background of executives in cross-border mergers and acquisitions will After the merger,the innovation performance of the company has a promoting effect.Then,the overseas background of the executives is subdivided into overseas learning backgrounds and work backgrounds,and the impact mechanism and path of the overseas backgrounds of the executives on innovation performance are clarified,and the impact is tested for robustness.The research results show that the overseas background of executives can significantly promote the innovation performance of companies after cross-border mergers and acquisitions.Further research has found that in the overseas background of executives,it is the overseas working background of executives that has a significant effect on innovation performance,while overseas study Background has no significant effect on it.In addition to the variables that this article focuses on,whether it is a technology company,enterprise size,asset-liability ratio,ROA,and absorptive capacity all show a significant promotion effect on innovation performance.Compared with non-technical mergers and acquisitions,technological mergers and acquisitions have a greater impact on innovation performance;the larger the enterprise size,ROA,asset-liability ratio and absorption capacity,the higher the innovation performance of enterprises after cross-border mergers and acquisitions.In the empirical exploration of the impact mechanism of executives ’overseas background on innovation performance,it is found that the maturity of the company,that is,the difference between M & A and the year of establishment,has a significant negative adjustment effect on the innovation performance of M & A after the executive’s overseas background,indicating Higher enterprises will weaken the innovation effect of senior managers’ overseas background,which can be explained from the perspective of thinking solidification.As one of the important forms for Chinese enterprises to acquire external technical resources,cross-border mergers and acquisitions have played an important role in the process of technological innovation in China.Through the research results of this paper,the combination of high-level theory and the research on the innovation performance of corporate mergers and acquisitions provides new ideas for China to effectively use human resources in cross-border mergers and acquisitions to better achieve its own technological breakthroughs;The ability to innovate is of great significance.