The Effect of Manager’s Overconfidence on the Performance of Transnational Mergers and Acquisitions -- an Empirical Study based on China's state-owned Enterprises
Abstract
This paper selects A-share listed companies in Shanghai and Shenzhen from 2011 to 2016 as samples, and studies the relationship between manager’s overconfidence and performance of cross-border M&A from the perspective of China's state-owned enterprises. The empirical results show that the overconfidence of managers has a significantly negative effect on the performance of M&A. According to the nature of ownership, the samples are divided into two groups: state-owned enterprises and non-state-owned enterprises. We find that the overconfidence of managers in the sample group of state-owned enterprises has a greater impact on the performance of cross-border M&A.
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