A Study On Created Assets Acquisition Mechanism Of Chinese Enterprises Based On Overseas M&A Process

The foreign direct investment of Chinese enterprises is transferring fromdeveloping countries to developed countries now. And this international strategy istaken as an important way to access to the advanced technology and knowledgeresources, to learn and imitate the competitive advantages in the host country. It is animportant study on how to improve the effect of the created assets in the overseasmergers and acquisitions, to control and guide the created assets needed during themergers and acquisitions process, as well as the post-merger integration of resourcesand the application of created assets. This dissertation will explore which factorsregulate and access to created assets performance through the overseas M&A processfrom the practice of Chinese enterprises.Around the topic, this dissertation summary the existing literature in the fieldfirstly; then make the status description and analysis; analyze and sort the createdassets acquisition mechanism model through M&A process based on the typical casestudy; and then be tested through empirical research; in the end providerecommendations to the Chinese practices according to the study concludes.On the basis of case studies, questionnaire survey and multiple regressionempirical test to the Chinese enterprises, this dissertation draw the followingconclusions:(1) The cases of created assets seeking overseas M&A is increasing;most of cases focused on the seeking advanced technology, core knowledge,well-known brand, mature channel and relationships resources;(2) Through empiricaltesting, this dissertation also further validate that the different factors in M&Aprocess play with varying degrees of effect on the access to different assets of thetarget company. In all the pre-merger factors, the overseas M&A motivation, theassessment of resource and capacity to the target corporate and M&A enterprise, andthe distance factors (especially technical and cultural distance) have significant impacton acquisition and application of created assets.(3) In all the med-merger factors, theopen and expedite communication channels of the two enterprises (especially basedon networks and personnel channel), the bargaining ability and the compatibilityacquisition targets have significant impact on acquisition and application of createdassets.(4) In all the post-merger factors, merger integration performance (especiallyhuman resources and financial integration), the absorptive capacity and the continuityof M&A have significant impact on the acquisition and application of created assets. Through above studies on the issue of created assets acquisitions throughoverseas mergers and acquisitions, the dissertation tries to innovate in the followingareas:(1) The literature usually analysis the impact to the acquisition targets from thefactors of M&A external environment and the integration of acquisitions, thedissertation means to explore impact factors of asset acquisition from the newperspective of overseas M&A process;(2) This dissertation focuses on the createdassets acquisition of Chinese enterprises overseas M&A, and access assetsacquisition mechanisms based on the M&A process factors, it means the systematicanalysis of influence differences from strategic factors such as resource requirements,target, negotiation and assessment capabilities, from organizational factors such asabsorptive capacity and M&A integration, to different types of assets;(3) It alwaysused the case studies and qualitative analysis methods in the past, this dissertationmade the new questionnaire design for the topic, collect primary data on the ChineseM&A events, the method combines first-hand questionnaire survey and case studies.According to the main conclusions of this dissertation, we provide some advicesto Chinese enterprises which are willing to make the more targeted and effectivecreated assets acquisition in the overseas mergers and acquisitions:(1) attachimportance to the motivation of creative asset-seeking M&A;(2) make effectiveassessment of resources of both conditions;(3) realize the compatibility of acquisitiontargets;(4) maintain the communication channels smooth and unblocked;(5) achieveeffective integration of acquisitions;(6) improve the level of absorptive capacity andinnovation actively. It provides guidelines for the future created assets acquisition andinnovation capacity building of Chinese enterprises.