Research On The Influence Of Labor Protection In Host Country On The Cross-Border Mergers And Acquisitions Of Chinese Corporations

With the continuous development of economic globalization and world economic integration,the economic relations and trade cooperation among countries are constantly strengthened.Chinese enterprises begin to actively seek more global opportunities and try to carry out global business.In recent years,cross-border merger and acquisition has become an important investment strategy.Chinese enterprises gradually enter foreign markets in the form of cross-border merger and acquisition,achieve access to foreign market resources,accelerate their expansion and development in the global market,and thus promote the pace of their globalization strategy.After taking the first step of "going out",how to better "going on" is the primary problem faced by enterprises,and "institution" as an important external influencing factor has also been paid more and more attention.As an important dimension of institutional quality,labor protection is prevalent in countries at different levels of development,affecting the transaction environment,transaction costs,and operational efficiency,and is an important factor that Chinese enterprises must consider when conducting international operations.Therefore,from the perspective of labor protection institution,it is necessary to study the influence of host country institution on the cross-border M&A of Chinese enterprises and its heterogeneity.Based on the perspective of the whole process of transnational M&A,the decisionmaking stage of M&A and the post-M&A integration stage.Taking the cross-border mergers and acquisitions of Chinese corporations from 2000 to 2020 as samples,this study considers the impact of host country labor protection from three aspects: duration of M&A transaction,success or failure of M&A and long-term performance after M&A.In the further analysis,this paper combines macro and micro perspectives to discuss the role of enterprise heterogeneity factors in the integration stage.The study finds that for the M&A decision stage,a stronger degree of labor protection in the host country prolongs the M&A transaction duration and increases the M&A success rate.For the post-merger integration phase,strong labor protection in the host country negatively affects the subsequent long-term integration performance of firms,and this conclusion is more significant in private enterprises,enterprises facing severe financing constraints,non-high-tech enterprises and "separation of powers" enterprises.Labor protection measures are better implemented in the host country with high efficiency of legal supervision.This paper plays a marginal role in enriching the institutional theory and the research related to labor protection and transnational M&A performance,and also has a certain practical significance for improving the international operation results of Chinese corporations.