TITLE:
The Empirical Analysis of Chinese Listed Enterprises Cross-Border M&A Performance
AUTHORS:
Dengge Wang, Shuolong Peng
KEYWORDS:
Listed Enterprises, Cross-Border M&A, Performance, Factor Analysis
JOURNAL NAME:
Open Journal of Business and Management,
Vol.4 No.4,
October
13,
2016
ABSTRACT: In recent years, Chinese enterprises have conducted cross-border M&A more and
more frequently. Cross-border M&A becomes an important way to achieve internationalization
strategy for Chinese enterprises. In this paper, taking China’s A shares
listed companies’ cross-border M&A in 2011 as samples, using the factor analysis
method to conduct Principal Component Analysis of multiple financial indicators,
establishing comprehensive score function of each year’s performance, we then
compared and analyzed the performance before and after the M&A of listing enterprises
in China by the difference analysis table. We find that lots of cross-border
M&A don’t bring significant benefits to growth, so we think that Chinese enterprises
should be cautious about cross-border M&A. At last, we give some suggestions to
cross-border M&A.