Company Mergers And Acquisitions In The Modern Enterprise System

The 1980's has witnessed a surge in the Mergers and Acquisitions of corporations (M&As), which not only propeled forward the industrial restructuring and thus improved the economic growth of one single nation, but also changed greatly the economic pattern of the whole world. In China, especially after 1990's, with the deepening of the industrial restructuring and the enterprise reform and the establishing of the Stock Exchanges, the M&As cases keep increasing. The Author has compared and studied the relative theories and practical exercises of M&As both in and abroad, aiming to make some theoretical contributions to the Chinese M&As market and the optimization of the economic structure.The article first examines the system foundations of M&As under the modem enterprise system (Chapter 2). M&As set requirements to the ownership of the relative entities, which should be a pure economic right with the nature of universality, clearness and integrity, exempt from political influence and government intervention. Comparing with sole propritorship and partnership, corporation, especially stock limited company, due to its advantages in share-ownership liquidity, shareholders types and finance, is the most suitable type for M&As. The nature of share-ownership commodity is also discussed in details. It's a kind of production factor, which maintains independence with other tangible assets and links closely with the operation of companies. The "use value" of the share-ownership commodity is the control over organisations and the M&As deals reflect the movement of the control.As concerns the reasons for M&As, the author distinguishes the external cause with the internal cause(Chapter 3), which the internal cause means the motivation of M&As and the external cause means the conditions and situation.M&As influence the macroeconomy in its own way and Chapter 4 and Chapter 5 examine it thoroughly. From the view of aggregate supply, the practice of M&As strengthen the relative organizations, so as to enable them to improve the technical level and the production ftmtion to increase the aggregate supply as well as the welfare of the whole society. From the view of aggregate demand, M&As enlarge not only the consuming demand and investing demand because of "wealth effect", but also the monetary demand by way of influencing both speculation demand and transaction demand. In addition, the article also discusses the influence of M&As towards taxation, national income and international balance of payment of one country.Chapter 6 analyses the system of M&As by introducing the key factors of M&As' effectiveness, such as a sound market system and mechanism, the securitization of ownership, and a highly developed capital market.Besides the comparsion of different types of M&As, the article also studies the role of the government and the functions and methods of both commercial banks and investment banks in M&As.Chapter 7 is about the international M&As. The author discusses the definition first, describing the new trends since 1980's, and then analyses respectively the -relevent theories as the motivations of international M&As. The influencial factors are also examined.Chapter 8 and Chapter 9 is the main part of the article, which highlights the M&As of Chinese companies, both in domestic market and in international market. The author reviews M&As' history in China, and discusses the necessity and imminence to develop the Chinese M&As1 market. A new term, "fictitious M&As", is introduced and elaborated in respects of its characteristics, creation mechanism, and the influence to macroeconomy. Strictly speaking, the existing enterprise system in China doesn't coincide with the modern enterprise system, which results in the fact that there is no "real M&As" in China now. The fundamental factor that impedes the development of M&As market in China, according to the article, is "government-oriented M&As". To improve Chinese M&As market, the following principles and measures must be adopted: to persist in the principles of equality,...