The Impact of Management Characteristics on Overseas M&A Performance: A Comparative Analysis of Two Chinese Enterprises.
Yuyu Feng, Ph.D Candidate; Jules Harris Danarson, Ph.D

Abstract
With the continuous implementation of China’s go-global strategy, overseas mergers and acquisitions (M&A) are receiving more and more attention as an effective way for enterprises to quickly acquire overseas resources and enhance international competitiveness. This paper is a comparative case study of overseas M&A of two Chinese companies, Sany Heavy Industry Co. Ltd. and Guangxi Liugong Machinery Co. Ltd., which measures the M&A performance and studies the impact of management characteristics on overseas M&A performance. The finding outlines the fact that the M&A approaches adopted by the two companies are mainly focused on the pursuit of technological innovation, expansion of the international market and enhancement of brand competitiveness. By comparison, Sany is better than Liugong in pursuing technological innovation and expanding international market, and is more performant thanks to the unique characteristics of its management being run by younger staff members with Ph.D degrees, high-level engineering capabilities and international background.

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