The determinant of performance of cross-border M＆As in China： A comparative study between overseas Sino and Anglo firms

This study examines the factors that affect the performance of foreign acquiring firms in Chinese M＆As （mergers and acquisitions） market. Comparing between overseas Sino-Group and Anglo-Group, this study found that familiarity and location were the most important factors influencing performance of M＆A transactions in China. It also found that unrelated M＆A deals should be merged with familiarity for gaining positive acquisition performance. The total sample used in this study was 3,442 cases from October 1980 to March 2005. Because this period included all deals of M＆As after the opening of Chinese market in China. The authors＇ finding provided a more universal explanation in the cross-border M＆As in China.

The Effect of Performance Management System on Employee Productivity in Cross-Border E-Commerce Enterprises in China

The aim of the current research was to analyze how the performance management system of China’s cross-border e-commerce enterprises affects employee productivity.The study was guided by the following research objectives:to investigate the performance management system on employee productivity in cross-border e-commerce enterprises in China;to determine the relationship between the performance management system and employee productivity in cross-border e-commerce enterprises in China.The study adopted a quantitative approach to the effects of performance management practices on employee productivity.The dependent variables included performance appraisals,reward systems,and performance feedback,and the implications on employee productivity as the independent variable.The target population is comprised of 400 employees in China’s cross-border e-commerce enterprises.Descriptive statistics were utilized as a data analysis tool.The demographic profiles of the respondents were analyzed using percentages and frequencies.Inferential statistics such as correlation and regression analysis established the relationship between dependent and independent variables.The study recommends that the performance management practices should be optimized to improve employee performance.Performance reviews should be focused on the contributions of the individual employees to meet the organizational objectives.For every possible opportunity,the manager should formally recognize good employee efforts for enhanced work performance.Effective performance management practices that edify appraisal and reward should be used to achieve organization goals and enhance employee productivity.

The Relationship Between Cross-Cultural Conflict Management Levels and Employee Organizational Performance in Cross-Border E-Commerce Corporations in China

This research focuses on the cross-cultural conflict management of cross-border e-commerce corporations in companies on employee organizational performance under conflict management such as power distance conflict,individualism,long-term orientation,indulgence and avoidance of uncertainty as the independent variables and employee organizational performance such as quality,efficiency,and profitability of organizational tasks as the dependent variable.With the advancement of China’s reform and opening up and the implementation of the“One Belt,One Road”strategy,the globalized economy has penetrated into various countries and regions.China trade exchanges with other countries have become more frequent,and have also set up branch factories and branches abroad.However,there are certain differences between the branch company and the domestic culture in the actual operation process.If the cross-border e-commerce corporations cannot handle these contradictions and differences well,the company may face difficulties such as cultural conflicts.For this reason,this paper makes a deep analysis of this,taking the cross-border e-commerce corporations in Guangxi as an example,and points out the problems existing in cross-cultural management in this region and putting forward personal opinions and solutions to related problems,and putting forward feasible solutions,enhances the understanding of involving conceptualizations of cross-cultural communication conflict and its management in the frame of cross-cultural conflicts management theory and provides references for the formulation of cultural conflict management measures for cross-border e-commerce corporations.So that enterprises can gain a firm foothold in the international market competition,enrich and enhance their soft power,and enhance their international status in the development of multinational regions.The result of this research will not only answer existing research questions,but also introduce new ideas and new questions for future research.

Analysis of Economic Performance in Mergers and Acquisition

Based on the methods of financial analysis, the direct earnings in mergers and acquisition M&A, profit or loss from stock price fluctuation, influence on the earning per stock(EPS) and revenue growth after M&A were analyzed in detail. And several quantitative models were established in relevant part accordingly. It can be useful to improve the present low efficiency in the M&A performance in Chinese capital market.

Motivation and Performance Analyses of Suning’s Acquisition of Carrefour

In the new era of China’s retail business transformation,retail enterprises have launched online and offline omni-channels,developed all-category business models,and taken the step toward merger and acquisition expansion.This paper studies and analyzes the motivation and performance of Suning’s merger and acquisition of Carrefour China through literature research,case study,the financial index method,non-financial index method,and comparative analysis method.Based on the analysis,this merger and acquisition has improved Suning’s management efficiency but reduced its profitability and increased its risks,mainly due to the pressure of traditional business sales,the unstable operating channels,and the fact that the integration of the two parties has not achieved the desired results.

Testing Operating Performance of Chinese Listed Firms before and after Cross-border M&As: The Role of Entrepreneurial Orientation

At a time when China encourages its firms to go overseas,especially to countries and regions involved in its"Belt and Road Initiative",and sets up a favorable domestic environment for innovation and entrepreneurship,this paper is a first trial looking along both the two dimensions to test whether Chinese firms’operating performance changes after cross-border merger and acquisition(CBM&A)activities,using entrepreneurial orientation(EO)as a moderating factor.The paper combines data from Chinese listed firms’annual reports,Chinese stock market financial statements database and the Zephyr database from 2001 to 2015 to examine how acquirers’operating performance changes after CBM&A activities using EO as a moderating factor.In order to test whether the results are affected by the stock market,this paper also defines abnormal return on equity(ROE)to detect abnormal operating performance.After these,the paper divides the sample into separate industry groups to see whether results will change.The results obtained for the whole sample show that the performance of Chinese listed firms is fluctuant after CBM&As within the sample years.It increases one year after the acquisition but drops two years later and then follows an increasing trend again.The moderating factor of EO is not significant for the sample as a whole.However,after dividing the sample into separate industry groups,it becomes clear that different industries have their own characteristics.EO helps Chinese listed firms to adjust to the post-acquisition situation and even to improve their performance to some extent in the metal mining industry and the business services industry.When ROE is substituted with abnormal ROE,the results do not change much.

Are Chinese Acquirers Discriminated against in Cross-border Mergers and Acquisitions?An Analysis Based on Covered Transactions Filed with CFIUS

This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States(CFIUS)of cross-border mergers and acquisitions targeting American companies based on publicly available news reports and announcements to examine the heterogeneity hypothesis in the CFIUS review process.A comparative analysis of case studies and an empirical analysis of logit regressions are performed.We also explore how CFIUS reviews may have an impact on corporations'future mergers and acquisitions decisions in a panel data model setting.The results show that both unfair treatment in CFIUS review and the deterrent effect of CFIUS interventions have contributed to the recent sharp decline in China s direct investment in the US.

Economic Policy Uncertainty and Corporate Mergers and Acquisitions

In recent years,the frequent adjustment of the government’s economic policies and the uncertainty of foreign economic situations have made the degree of uncertainty of China’s economic policies rise continuously.The increasing degree of policy uncertainty will inevitably affect the investment and financing decisions of micro enterprises.Then,how does economic policy uncertainty(EPU)affect mergers and acquisitions(M&A)behavior?What’s the mechanism?Based on the above questions,this paper uses the data of non-financial listed companies in the Shanghai and Shenzhen stock exchanges from 2008 to 2018 as a sample to explore the relationship between EPU and M&A.The study shows that rising EPU will promote corporate M&A behavior,and this effect is more significant in slow-growth companies.The relationship between EPU and M&A is affected by corporate governance,stock price volatility and financing constraints.Specifically,the company’s M&A size is more sensitive to EPU with higher level of corporate governance,higher level of stock price volatility,and lesser financing constraints.Further research shows that the rise of EPU will significantly promote the improvement of M&A performance in the short-term,but this effect does not exist in the long-term.Various robustness checks do not change the empirical results of this paper.

China's Foreign Direct Investments:Challenges of Due Diligence and Organizational Integration

This paper critically reviews Chinese companies' foreign direct investment practices of recent years. Using case studies involving overseas Greenfield as well as merger and acquisition(M&A) of Chinese enterprises, we aim to draw lessons from these experiences. However, because of increasing importance of outbound acquisitions by Chinese companies, this paper focuses on Chinese M&A activities. After presenting the theoretical discussions of post-acquisition organizational integration, this paper identifies factors that have contributed to less than expected performances of Chinese foreign investments. Three main factors are identified as the plausible causes of the less than satisfactory outcomes: inadequate due diligence, not considering political and country risks, and cultural differences. In all cases, inexperience of Chinese enterprises in foreign direct investment, either in Greenfield form or M&A, has attributed to the problems. Therefore, summing the experiences of the Chinese enterprises that have foreign direct investment is essential for those Chinese investors that intend to invest overseas. Conduct of meaningful, in-depth due diligence before serious negotiations for investment or acquisition, inclusion of risk premium for political risk in cash flow analysis, and early post-merger integration planning are essential for avoidances of bitter outcomes many Chinese investors experienced overseas.

CEO Age, Earnings Management and Mergers & Acquisitions Evidence from China

This paper explores the relationship between CEO age in target firms, earnings management, mergers and acquisitions decision-making, and performance by using a sample of Chinese firms from 2008 to 2017. We found that CEO age is negatively correlated with M&A decision-making and target firms engage in a higher degree accrual-based earnings management(AEM) than non-target firms. In addition, target firms with young CEOs exhibit a greater extent of AEM in the pre-M&A period. We also found that the relationship between CEO age and M&A performance is inverted U-shaped. AEM of pre-M&A is negatively correlated with M&A performance, indicating that M&A performance is affected by AEM of pre-M&A.