Research On The Existence And Influencing Factors Of "Winner Curse" Phenomenon In Cross-border M&A

With the deepening of economic globalization,more and more Chinese companies have gone abroad through cross-border mergers and acquisitions.Cross-border mergers and acquisitions can optimize the company's resource allocation and promote its rapid growth,while also improving the company's core competitiveness and making it more competitive in the international market.However,there is controversy in the efficiency of cross-border mergers and acquisitions of Chinese companies in academic circles,that is,is there a "winner curse" phenomenon in cross-border mergers and acquisitions in China? Based on the relevant theories of cross-border merger and acquisition efficiency,this paper studies the influence mechanism of the "winner's curse" and the related mechanism of the "winner's curse" for empirical research.Based on data from a total of ninety-nine cross-border M & A samples from 16 to 19 years,we study whether there is a “winner curse” for cross-border mergers and acquisitions in Chinese companies.What is the impact of asymmetric information and executive overconfidence on the“winner curse”? Provide reference recommendations for cross-border mergers and acquisitions of Chinese companies,reduce the excessive negative impact of the "curse of winners" on enterprises,better implement the "Go Global" initiative proposed by the country,explore international markets,promote industrial transformation and upgrading of enterprises,and improve their international competitiveness.The innovation of this article is to use the data from 16 to 19 years to study empirically the cross-border merger and acquisition of listed companies in China.Whether there is a "winner's curse" and its impact,and through researching the influencing factors of the "winner's curse",put forward related policy recommendations.This article combs and analyzes existing literature through literature research,and uses the qualitative analysis method to construct the theoretical framework of "the winner's curse".Through the event research method,using empirical data from China's listed companies' cross-border mergers and acquisitions from 16 to 19 years,it was found that during the event window period of [-5,+5],99 cross-border mergers and acquisitions had accumulated excess returns There are 52 negative rates,accounting for53%.The cumulative average excess return rate is-1.17% and is significant at the 1%confidence level.Later,different event windows were added for comparison,and it was found that the "winner curse" does exist in cross-border mergers and acquisitions oflisted companies in China,and the degree of influence of the "winner curse" is close to half,which indicates that cross-border mergers and acquisitions of Chinese companies have not reached the expected efficiency.M & A companies pay a higher price for the target company.Then establish an empirical model to study the impact of information asymmetry and executives' overconfidence on the "winner's curse".The empirical results show that the target company's P / B ratio,the target company's valuation and the "winner's curse" impact rate are significantly positively related.The company's turnover is significantly negatively related to the "curse of winners" impact.The total market value and net assets of the target company,as well as the turnover,the acquisition costs of the acquisition company,the successful acquisition experience of the acquisition company,and the financial consultant of the acquisition company,although the regression results of the influence rate of the "curse of the winner" are not significant,but also show the information Asymmetry and executive overconfidence have a negative impact on the "winner curse".After the robustness test,the empirical results were found to be more robust.Through the above research and analysis,we propose corresponding policy recommendations for cross-border mergers and acquisitions of Chinese companies,including a detailed analysis of the actual value of the target company,a reasonable valuation,the establishment of a suitable manager incentive mechanism,the establishment of a managerial professional training system,and a clear motivation for mergers and acquisitions.,Grasp the timing of mergers and acquisitions and company positioning,improve the company's own competitiveness,strengthen the company's risk supervision,obtain the support of the national government in cross-border mergers and acquisitions,improve the construction of laws and regulations for mergers and acquisitions,and support of related policies,and better guide our company's Cross-border M & A.