Improvement Of The Efficiency Of Cross-border Mergers And Acquisitions

The phenomenon that an enterprise become huge through its annexation of rival is greatly outstanding in modern economic history; none of the American mass companies does not grow up through certain degree and form of the M&A." This is said by the U.S.A. famous economist, Nobel Prize for economics winner George · Stigler (George. J.Stigler). Hence, since 1990s, the M&A tide characterized by transnational M&A has spread from U.S.A. to the Europe, Asia and even the whole world rapidly, especially the fifth M&A tide at the end of 1990s. The transnational M&A in 1999 accounts for more than 80% of total value inall the foreign direct investment (Foreign Direct Investment, abbreviated as FDI) of developed countries. Hence, the transnational M&A becomes the main mode of FDI.However, we can't feel optimistic because the frequencies and the low efficiency of M&A coexist. The statistics shows, 70%-80% of transnational M&A failed as for sorts of causes. M&A itself is risky, while the transnational M&A is much more risky. Once failure in dealing with some links, deadly blows will be brought to a company, which is strong originally, even made a shop with a history of a century fall down. This has aroused the concerns from the theory circle and the business circle.At present, the study on transnational M&A of theory circle was launched from the foreign investment theory and the general M&A theory under the economics angle and legal structure angle mainly. Correspondation with it: in practice, the transnational M&A that is feasible in law and economy fails; meanwhile, the transnational M&A that is not feasible in law and economy takes place occasionally. Obviously, there are some defects in present research, need a comprehensive angle to carry on network analysis on efficiency of transnational M&A theoretically.In view of this, the paper is guided by the idea of the Parroto Efficiency, regarding efficiency improvement as breakthrough point, mixing with the foreign investment theory and the general M&A theory, making a systematic study how thetransnational M&A affect the efficiency of micro aspect of enterprise, neutral aspect...