Research On The Impact Of Financing Methods On Overseas M&A Performance

As the process of globalization continues to accelerate and regional economic integration continues to deepen,a large number of Chinese companies participate in international operations.Overseas mergers and acquisitions,as the main method of overseas investment,have experienced rapid growth.Under this background,it is inevitable to face the problem of large capital financing arising from overseas mergers and acquisitions.Compared with domestic M & A,overseas M & A transactions are huge,and the ability to raise the required amount of M & A transactions will directly affect the completion of M & A activities and subsequent changes in operating performance.Therefore,the choice of financing method has become one of the keys to the success of M & A.Reasonable financing arrangements can not only effectively allocate capital sources and improve financing efficiency,but also reduce the financial pressure of enterprises and reduce the risk of mergers and acquisitions.The current research on overseas mergers and acquisitions is gradually increasing.How to improve and improve the choice of financing methods for mergers and acquisitions and provide more convenient and effective financial support for enterprises to carry out overseas mergers and acquisitions are the main directions of this study.This article takes the overseas M & A financing events carried out by Chinese enterprises in recent years as the research object.Based on the analysis of the current status of corporate M & A financing,the regression model is used to study the impact of M & A performance of different financing methods as a whole.Compared with debt financing and equity financing,hybrid financing in mergers and acquisitions can have a more positive impact on corporate performance.At the same time,the two typical overseas mergers and acquisitions cases of Midea Group's merger and acquisition of German KUKA and Tencent Holdings' merger and acquisition of Supercell were used as research objects to compare and analyze the short-term and long-term performance of enterprises after different mergers and acquisitions in order to provide Chinese enterprises with future overseas merger and acquisition financing methods.Suggestions and references.The research in this article shows:(1)At present,the choice of financing methods for overseas mergers and acquisitions of Chinese enterprises is still mainly debt financing,followed by equity financing,mixed financing is less used,and the financing method is relatively simple;(2)Empirical research found that there is a negative correlation between debt financing and corporate M & A performance,a positive correlation between hybrid financing and corporate M & A performance,and equity financing may have a positive effect,but the correlation is not significant;(3)Compared with traditional debt financing methods and equityfinancing methods,the innovative combination of hybrid financing methods is more conducive to improving corporate M & A performance.Therefore,in overseas mergers and acquisitions,we should innovate merger and acquisition financing tools,expand overseas merger and acquisition financing channels,rationally arrange financing structure,and formulate the best financing mix according to the actual situation of the enterprise to ensure smooth overseas mergers and acquisitions and reduce their financial risks.