Research On The Efficiency Of Cross-Border Mergers And Acquisitions Of Commercial Banks In China

Under the background of the current severe recession of the world economy affected by the epidemic,China’s global FDI stock accounted for a new high,and the "Belt and Road" initiative is still strong.With the rapid growth of China’s global cross-border mergers and acquisitions,the number of failed cases of mergers and acquisitions is increasing day by day.The survey shows that at present,Chinese enterprises are still optimistic about cross-border mergers and acquisitions,but from the perspective of commercial banks’ willingness to cross-border mergers and acquisitions,in recent years,China’s banking industry has not only not occurred cross-border mergers and acquisitions,but also asset sales,which is contrary to the overall cross-border mergers and acquisitions boom environment of Chinese enterprises.Throughout the development history of international commercial banks,cross-border mergers and acquisitions are one of the important forms to achieve the rapid expansion of commercial banks.With China’s opening up and the expansion and development of the "Belt and Road" process,the advantages of commercial banks in entering the international market through cross-border mergers and acquisitions will become more prominent.Successfully completing cross-border mergers and acquisitions and improving the efficiency of the acquirer bank have become an important starting point and foothold of cross-border mergers and acquisitions of commercial banks in China,and are also one of the important constraints on the reduction of cross-border mergers and acquisitions of commercial banks in China.Based on this,it is necessary to analyze and study the cross-border M&A cases of commercial banks that have occurred in China,and examine the impact of cross-border M&A on the efficiency of commercial banks.Starting from whether cross-border M&A improves the efficiency of acquirer banks,this paper explores the impact of cross-border M&As on the efficiency of China’s commercial banks by studying the sample of cross-border M&As that occurred in China’s commercial banks from 2008 to 2018.Using the DEAMalmqusit index to dynamically analyze the role of cross-border M&A on the efficiency of commercial banks,at the same time,combined with the above relevant indicators and factors that have a greater impact on the efficiency of cross-border M&A of commercial banks,a model of factors influencing the efficiency of crossborder M&A of commercial banks is constructed,and the specific impact mechanism is obtained by panel regression through stata software,which provides certain reference opinions and suggestions for future cross-border M&A of commercial banks in China.This study finds that: 1.Cross-border mergers and acquisitions will improve certain efficiency and have a positive impact on the operation of banks.The improvement of M&A efficiency is caused by the positive effect brought by the technological progress index and the inhibitory effect brought by the technical efficiency index,in which the promotion effect of technological progress is stronger than the inhibitory effect of technological efficiency.2.From the analysis of influencing factors,the improvement of cross-border M&A performance of commercial banks is related to the average return on assets,loan-to-deposit ratio,cost-income ratio and shareholding ratio,among which the average return on assets,deposit-loan ratio and shareholding ratio are positively correlated with the crossborder M&A efficiency of commercial banks,and the cost-income ratio is negatively correlated with the cross-border M&A efficiency of commercial banks.3.Through the evaluation of the efficiency of cross-border mergers and acquisitions of commercial banks and further research on the factors influencing efficiency,in order to improve the efficiency of mergers and acquisitions,we must first increase investment in science and technology and promote scientific and technological innovation;Second,commercial banks should strengthen their own operating capabilities and improve their comprehensive service level;Finally,before crossborder M&A,it is necessary to flexibly select M&A targets and reasonably formulate M&A strategies.