Research On The Relationship Between Cross-border M&A Scale And Performance Of Chinese Manufacturing Enterprises

In recent years,the manufacturing industry has been occupying the core position in the cross-border M&A events implemented by Chinese enterprises.Observing the M&A scale of Chinese manufacturing enterprises in cross-border M&A cases,This paper finds the following phenomena: Whether measured by absolute M&A scale or relative M&A scale,large-scale cross-border M&A and small-scale cross-border M&A are relatively close in quantity.Both large-scale and small-scale cross-border M&A have advantages and disadvantages,which creates the current situation that cross-border M&A events of different sizes are implemented by Chinese manufacturing enterprises.When implementing cross-border M&A,facing the choice of "large-scale" or "small-scale" target enterprises,how Chinese manufacturing enterprises should make decisions is a problem worthy of study.In order to deeply study the above problems,based on the theoretical analysis,this paper selects Chinese manufacturing enterprises that implemented cross-border M&A from 2008 to2016 as the research sample to carry out the empirical research of this paper.In terms of the explained variables,this paper comprehensively considers eight financial indicators of the enterprises in four aspects,calculates the comprehensive performance score of the enterprises in the corresponding year by using the factor analysis method,and calculates the short-term and long-term M&A performance on this basis.In terms of empirical model,this paper establishes a multiple linear regression model(OLS)to study the impact of relative M&A scale and absolute M&A scale on the performance of cross-border M&A of Chinese manufacturing enterprises,and tests the robustness of the results by replacing the explained variable,replacing the explanatory variable,sub-sample regression and changing the observation time.Then,Hausman endogeneity test is carried out to confirm that the model in this paper does not have serious endogeneity problems.Then,this paper tests the mechanism of action by means of regression of the mechanism variable.Then,this paper establishes an adjustment effect model to test whether there is an adjustment effect in the net operating profit margin and the ownership nature of the acquirers.Finally,this paper conducts further research on host country heterogeneity.The empirical results show that the relative M&A scale has a positive impact on the crossborder M&A performance of Chinese manufacturing enterprises,while the absolute M&A scale has no significant impact on the cross-border M&A performance of Chinese manufacturing enterprises.The results of mechanism test show that the positive impact of M&A scale on shortterm M&A performance is realized by improving development capacity and operating income,while the positive impact on long-term M&A performance is realized by reducing production costs.The empirical results on the regulation effect show that in the positive impact of M&A scale on M&A performance,there is a positive regulation effect on the net operating profit margin and state-owned attribute of the acquirers.The empirical results on the heterogeneity of host countries show that in cross-border M&A with high institutional distance,increasing M&A scale can improve short-term M&A performance,and in cross-border M&A with low institutional distance,increasing M&A scale can improve long-term M&A performance;With the increase of M&A scale,the M&A performance improvement of cross-border M&A with high cultural distance is greater than that of cross-border M&A with low cultural distance;With the increase of M&A scale,cross-border M&A with developed host countries will improve M&A performance,and cross-border M&A with developing host countries will not be able to significantly improve M&A performance.Finally,according to the results of theoretical analysis and empirical research,this paper puts forward some relevant suggestions at enterprise level and government level,hoping to provide some help for the cross-border M&A of Chinese manufacturing enterprises.