The Empirical Analysis of Chinese Listed Enterprises Cross-Border M&A Performance

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.