The Effect Of Cross-border Mergers And Acquisitions On Market Structure And Global Capital Flow

The dissertation presents an increasing important role the cross-border mergers and acquisitions (M&As), which dominates the foreign direct investment (FDI), plays in economic growth, technology advance and national welfare through the world. I hope the research fills some blank in the area of cross-border M&As and market competition, the internationalization of capital market and government policy-making and values much theoretically to these areas. With the theory of FDI, transaction costs and industrial organization, and modern economics analysis approaches and tools, I attempt to explain the developing facts of cross-border M&As in order to converge the practice and theory.The dissertation is organized as following: part I discusses the determinants and the effect on market structure of cross-border M&As; part II demonstrates the interrelation of cross-border M&As and capital market internationalization and relevant government's policy change. Part I consists of two chapters. Chapter I studies the entry alternative of cross-border M&As and transnational corporations(TNCs), especially the determinants of the choice between M&As and Greenfield investment when TNCs enter host countries. Chapter II analyzes the interrelationship between cross-border M&As and market structure theoretically and empirically from the perspective of M&As and market centralization, entry barrier, product differentiation, economy of scale and scope, the latter four components making up of market structure in industrial organization theory. Part II involves five chapters. Chapter III researches the interrelation between M&As and capital market internationalization and their internal mechanism in an opening economy, and presents financial and economic conditions for facilitating capital market internationalization. Chapter IV expatiates the case of China capital market internationalization and cross-border M&As, describing the internationalization process of China capital market and situations of M&As of foreign presence in China capital market, and analyzing institutional aspect of policy-making in that process. Chapter V presents the general implication of government's supervision and regulation to cross-border M&As. Based on previous literature on this subject, the controversies about competition and anti-competition, and benefits versus costs in resources transferring become the major concerns in this dissertation. With empirical proof on several countries I analyze the cross-border M&As regulation and policy-making. I assess the policy changes of Chinese government M&As regulation since the increasing foreign M&As in the 1990s; put forward the strategic blueprint of policy-making about foreign M&As of domestic enterprises and domestic ones overseas M&As. Chapter VI researches the major changes of regulation policy on cross-border M&As in an opening economy and emphasizes the regulation policy keystone of M&As in capital market and its tendency during capital market internationalization. Chapter VII gives the case of foreign M&As in China listing home appliances industry and with such miniature presents the M&As status of TNCs and their affiliates, and predicts the future trend of China capital market internationalization process.