Institutional Distance,Integration Model And Cross-border M&A Performance In Chinese Service Industry

Institutional distance is increasingly becoming an important consideration for the development of cross-border mergers and acquisitions,in the process of "going out" to carry out cross-border mergers and acquisitions and integration,due to differences in the national system system,different social values,we must be careful to deal with the impact of system distance,system distance affects the main and enterprise merger and acquisition integration model selection and the realization of merger and acquisition performance,this study tries to discuss how the system distance affects the choice of cross-border merger and acquisition model of Chinese service enterprises,and then explore the mechanism of the impact of system distance on cross-border merger and acquisition performance.This study combines the theory of system and the theory of cross-border mergers and acquisitions,tries to explore the mechanism of system distance,cross-border merger integration model and the performance of cross-border mergers and acquisitions,and introduces the situational adjustment factor of manager characteristics,puts forward the theoretical hypothesis,and analyzes the hypothesis by analyzing the data of 162 cross-border mergers and acquisitions carried out by the listed service enterprises in mainland China from2008 to 2017 as a sample to verify the hypothesis.Empirical studies have found that:(1)institutional distance has a significant negative impact on the performance of cross-border mergers and acquisitions in the service industry,the formal system distance has a more significant impact on the performance of enterprises than the informal system;(5)The average academic qualifications of managers reinforce the negative correlation between institutional distance and the performance of cross-border mergers and acquisitions.This study concludes that,first of all,the distance of the host country system has a significant negative impact on the performance of cross-border mergers and acquisitions in service industries.Secondly,the merger and acquisition integration model plays an intermediary role in the relationship between institutional distance and the performance of cross-border mergers and acquisitions in the service industry.Finally,the average education ofmanagers has an important influence on the performance of cross-border mergers and acquisitions in the service industry,and the average education of managers can strengthen the institutional distance to have a negative impact on the performance of cross-border mergers and acquisitions.This study can not only enrich the theory system of cross-border mergers and acquisitions in the service industry,but also provide the decision-making basis for the government decision-making departments to formulate positive industrial policies to optimize the institutional environment and stimulate the international competitiveness of service enterprises,and also provide management guidance for how to deal with the system distance and choose the right merger and acquisition model in the practice of Chinese service enterprises in order to successfully realize the improvement of merger and acquisition performance.