Cross-border (Diversified) M&A Performance Evaluation Of Chinese Listed Companies And Analysis Of Influencing Factors

In recent years,the IPO market in China has developed rapidly,and the scale of listed companies has continued to expand.Meanwhile,under this "New Normality",the Chinese economical structure has been adjusted and upgraded rapidly,and the rising of domestic labor costs and the global industrialization levels has put increasing the production and operation pressure on the traditional industries.When their traditional main businesses slowly grew,through cross-border M&A some listed companies have entered emerging industries,which could help them use resources such as advanced technology and talents to achieve the conversion of new and old kinetic energy.The number of cross-border M&A cases of listed companies in China increased rapidly from 2013 to 2015.Then due to the strict supervision of capital market,the number of cases fell to the bottom in 2018.Since then,the cross-border M&A behavior of traditional enterprises in emerging industries has gradually became rational.Under this background,this paper takes the cross-border M&A behavior of listed companies as the research object,and deeply analyzes the changes of scores and influencing factors of enterprises before and after M&A to put forward feasible suggestions.On the basis of sorting out the relevant literature,this paper firstly conducts a systematic theoretical analysis on the performance evaluation of cross-border M&A and its influencing factors,and then puts forward research hypotheses.Then,aiming at the major cross-border M&A events of listed companies from 2013 to 2017 as the research object,the event analysis method is used to investigate the short-term performance impact of cross-border M&A,and multi-dimensional financial indicators are selected to investigate the changes in long-term comprehensive performance before and after crossborder M&A.Finally,the influence of five variables,including management retention,on the long-term performance of corporate M&A is researched.As follows are the main conclusions:First,the short-term performance of corporate cross-border M&A is significantly positive.The curves of excess rate of return and cumulative excess rate of return constructed based on the event study method show that both have achieved rapid growth since the M&A announcement date,and passed the statistical test of significant improvement after post-M&A.Second,the long-term performance of corporate crossborder M&A shows a fluctuating upward trend.The long-term comprehensive performance calculated through the entropy weight method increased significantly during the VAM period.Although it declined during the integration period,it was still higher than that before the M&A.After M&A,the long-term performance resumed growth.Third,there are differences in the effects of various influencing factors on the long-term performance of cross-border M&A.The quantitative analysis shows that the shareholding ratio of the largest shareholder has a negative impact on the longterm performance of cross-border M&A,and the inhibitory effect increases with the increase of the lag period.There are immediate and lagged positive effects,while the effect of R&D investment intensity is only significant in the short term.In addition,there are significant differences in the effect of each influencing factor on the sub-indicators of long-term performance,among which the positive incentive effect of corporate operating efficiency and solvency by share-based payment and management retention is particularly significant.Finally,according to the results of empirical analysis,this paper puts forward targeted policy recommendations for enterprises and regulators to improve the performance of cross-border M&A of listed enterprises.