Abstract: We select the data of A-share listed companies in Shanghai and Shenzhen Exchanges from 2001 to 2011 as the sample and study the role of converge of accounting standards in multinational capital operation, especially in overseas merger and acquisition. Based on the effect of Chinese accounting standards convergence on the amount of overseas mergers and acquisitions of listed companies and their investment efficiency, we predict and find that:（1）the amount of overseas mergers and acquisitions of listed companies show a significantly growing trend after the converge of accounting standards. （2） Listed companies that experienced overseas mergers and acquisitions have a significant improvement in investment efficiency compared with that before standards converge. Moreover, we find that the improvement of the overall investment efficiency mainly results from the reduction of excessive investment after overseas mergers and acquisitions. But no significant change has been found before the appearance of accounting standards convergence, which suggests that accounting standards convergence plays an important role in the implementation of the strategy of “Going-out Strategy” and the improvement of investment efficiency of overseas mergers and acquisitions companies.
Keywords: Accounting Standards Convergence, Overseas Mergers and Acquisitions, Investment Efficiency
source:Finance & Trade Economics ,No12,2013