Mergers And Acquisitions In China's Reform And Research

Enterprise merger and acquisition (below abbreviated as M&A), which has shown strong growth tendency since its appearance in China in 80s, spurs the readjustment of China's economic and industrial structures and promotes the deepening of state-owned enterprise reform. In China, the theoretical study of enterprise M&A evidently falls behind actual practice, thus the prompt development of enterprise M&A operations has presented a serious challenge to theoretical study. Based on the market economies in the developed western countries, with their theoretical framework resting on the neo-classical economics and the transaction expense theory, the current theories on enterprise M&A can no way give a reasonable scientific explanation and settlement to the problems and contradictions enterprises face in merger and acquisition in our reform period. The study of enterprise M&A in the reform period is the objective need of actual practice and therefore is quite urgent and significant.The choice of enterprise merger and acquisition of China's reform period, i.e. the period transiting from planned economy to market economy, under the public own ship-dominated condition as the study subject is an innovation. Many of the problems and contradictions our enterprises meet in conducting mergers and acquisitions have not appeared in the typical market economy and therefore have characteristics of their own and phase features. For example, how to define the government behavior born of the specialties of state-owned enterprises, how to dispose of the earnings from property right transfer, how to settle the workers of merged and/or acquired enterprises. To these questions, if we do not make deeper study from the perspectives of theory and policy-making and thus put forward corresponding solutions, enterprise M&A in China can hardly push on further, nor can reform for state-owned enterprises make any major breakthrough. Consequently the constant rapid development of national economy will suffer. In this respect, choosing enterprise M&A in the reform period as a study subject is of very important realistic significance.The thesis consists of 8 chapters and 1 appendix, nine parts in total.Chapter 1. General statement of enterprise merger and acquisitionDefining enterprise M&A and making a brief introduction of western theories of enterprise M&A. Between two major momentums for western enterprise M&A, one is the seeking for the maximization of profit, the other is the product of competition pressure. The effects of enterprise M&A are economic synergy, including operating synergy, management synergy, financial synergy and human resource synergy, the improvement of enterprise growth efficiency, market share increase and finally the realization of competition strategy for enterprise development. Just because enterprise M&A has so many benefits, the wave of enterprise M&A rises up one after another in the Western countries.Chapter 2. Origination and characteristics of China's enterprise M&A in the reform period.Having its deep theoretical background and social economic background, the rise of enterprise M&A in China is the necessary result of the reform and the opening up and also the objective demand of ideological liberation and economic development. China's enterprise M&A has undergone the process from government's solely ridding of money-losing enterprises like throwing the burden to enterprises voluntarily conducting M&A and restructuring to meet the need of the development strategy. M&A and restructuring have greatly facilitated the deepening of economic mechanism reform and readjustment and upgrade of the national economic structure and pushed forward the sustained healthy development of our national economy.Chapter 3. Main body of M&AThe current property rights structure of state-owned enterprises assumes such multi-stratum mandate mode as: the whole people--central government--local government--state-owned enterprise. Such arrangement of property right structure has caused the inappropriate division of ente...