Research On The Impact Of TMT Heterogeneity And Industry Relevance On Cross-border M&A Performance

In recent years,with the gradual improvement of the construction of our country’s capital market and the successive introduction of standardized mergers and acquisitions and restructuring policies for listed companies,there has been a boom in cross-border mergers and acquisitions in the capital market.In the post-epidemic era,when the global economy is showing signs of recovery,Chinese companies with abundant capital flows can take this opportunity to develop a global layout and find high-quality target companies to withstand single-market risks.However,cross-border mergers and acquisitions are complex and difficult.In the context of Chinese companies’ overseas mergers and acquisitions,what factors affect the performance of various companies after overseas mergers and acquisitions?How can companies achieve a good start in different types of mergers and acquisitions?The organizational structure of TMT(Top Management Team)has an important impact on the performance of corporate cross-border mergers and acquisitions.Comparing with a homogeneous TMT,a heterogeneous TMT has the characteristics of cognitive diversity and has complementary advantages in mental models,professional skills,and social relationships.In the complex environment of cross-border mergers and acquisitions,a highly heterogeneous TMT can accurately predict risks through a comprehensive analysis of information,perceive and grasp potential opportunities,and provide companies with diversified perspectives to help the team make more comprehensive strategic decisions in cross-border mergers and acquisitions.This research is based on Upper Echelons Theory and Group Decision-Making Theory,taking the companies in China’s Shanghai and Shenzhen A stock market in cross-border M&A events from 2008 to 2018 as sample.Using the market mode of Event Study Methods to evaluate M&A performance.This research focuses on the perspective of cognition and motivation,specifically the heterogeneity of the TMT’s age,gender,and professional background and explors the effect of the heterogeneity of the TMT on cross-border mergers and acquisitions performance.The research results show that the age heterogeneity,gender heterogeneity and professional background heterogeneity of the senior management team have a significant positive impact on the performance of cross-border mergers and acquisitions.At the same time,this paper finds that when the target company main merged company have high industry relevance,the impact of the age heterogeneity of the TMT on the M&A performance is enhanced,but the impact of the heterogeneity of the TMT’s professional background on the M&A performance is weakened.With the results of this research,this article enriches the application of Upper Echelons Theory in the Chinese context and expands the research on the factors of cross-border mergers and acquisitions performance.This research also provides guidance for the mergers and acquisitions of Chinese companies.It has certain enlighteningsignificance for the construction and structural optimization of the company’s senior management team.Finally,the summary shows the limitations and deficiencies in the research process and also prospect the future research.