Based On The Perspective Of The Host Country's Foreign M & A Risk

As a main mode of Foreign Direct Investment (FDI), Cross-border Mergers and Acquisitions (M&As) is to be attached important by many countries in recent years. The risks derived from Cross-border Mergers and Acquisitions also are paid more attention to by host-country. What on earth risks to host-country will cross-border M&As bring and how about the effects? This paper answers these questions.There are three parts, composed of six chapters.Part â…  is the prologue of this paper, mainly discussing the backgrounds and significance of research, and also explaining some key notions existing in this paper.Part â…¡ is imposed of four sections, mainly introducing the theory frame of Cross-border Mergers and Acquisitions and analyzing the risks of cross-border M&As to host-country.Section one mainly discusses some theories related to cross-border M&As. After introducing and comment on existed theories, the author firstly puts forwards to the theory frame on risks of cross-border M&As to host-country, which consists of system risk, industrial risk and financial risk.Then the author detailed discusses three kinds of risk respectively from section two to four. The author thinks that system risk is embraced by economic system, political system and culture system, and cross-border M&As will bring much impact on these systems of host-country. The author also confirms that cross-border M&As will come into being market monopoly in host-country and hinder improvement of competitiveness of host-country's industry. Cross-border M&As will also cause financial crisis in host-country if not be well leaded by host-country's government.Part â…¢ is empirical study on the risks derived from cross-border M&As existing in China. The conclusion of empirical study is that there are no risks in China now, but there are some disadvantageous effects caused by cross-border M&As, which should be paid more attention.