Chinese Mutinational M&A: Performance And Risk Study

With the integration of global economy,aimed at strengthening market power, lowering cost,increasing efficiency and optimizing resource allocation,multinational M&A has become the symbol of internantional competition.When China has entering WTO,the domestic market has to join the international market in more areas and scopes. Chinese enterprise have to utilize multinantional M&A to speed up development.This topic has been a very urgent issue for the study of Finance.The paper described the history and development of Chinese multinational M&A, analysed the driving forces behind Chinese multinational M&A and pointed out that the Market/Manangement/Technology and Resource are the main driving forces.The focus of the paper is to ananlyse the successful factors and risk factors during Chinese multinational M&A.The paper construced the indicators measuring the performance of Chinese multinational M&A and emirically studied the performance of Chinese multinational M&A so the succeful facotrs were identified.In risk analysis,the paper identified the main risks during Chinese multinational M&A and build an indicators sysytem and model measuring the overal risks.The paper used the system and model to evaluate the TCL's with Thomson to vindicat the efficiency of the model.The model could be used as a tool to help Chinese enterprise M&A decisions.The innovation of the paper is mainly on the systems of indicators and models that were used to evaluat the performance and risks of Chinese multinational M&A.The paper alse made an emprical study and a case study to test the effciency of the systems and find out the driving forces belting the Chinese multinational M&A.The systems could help to fred the factors that make Chinese multinational M&A successful or failed. Thus the effciency of Chinese multinational M&A could be greatly improved.