Empirical Research on Factors Influencing the Performance of Cross-national M&A of Domestic Listed Companies

With 37 A-share listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange who implemented cross-national M&A between 2005 and 2007 as the research sample, the authors conduct analysis into the factors influencing the performance of the acquiring company by means of multiple linear regression model and make the follows findings: payment terms, shareholding ratio of largest shareholder, culture difference are positively influencing the performance of the acquiring company; government relevance is positively correlated to short-term performance after M&A and negatively correlated to the long-term performance; company size is negatively correlated to short-term performance after M&A and positively correlated to long-term performance. Based on the above findings, the authors point out that governments should enhance their support to cross-national M&A of domestic enterprises while companies should be conscientious in their timing and selection of target companies, reinforce integration after M&A so as to reduce the risk of M&A and improve performance after M&A.