Font Size: a A A

The Comparison Of Domestic And Foreign Merger-and-Acquisition Tools

Posted on:2005-07-04Degree:MasterType:Thesis
Country:ChinaCandidate:H Z YuFull Text:PDF
Abstract/Summary:PDF Full Text Request
With the development of opening and reform and improvement of world's economy globalization, our domestic enterprises have to face worldwide scope competition, so it is very important for them to become larger and more competitive in a short period.Following attracting foreign capitals, it is supposed that there will be a climax of merger-and-acquisitions in our country. Modern merger-and-acquisition mainly includes two aspects: cash payment and incorporation. But our domestic merger-and-acquisitions are mostly by cash payment because of short period of merger-and-acquisition's history and other reasons, and incorporation is not really used. So to buying enterprises, they need finance on a large scale constantly to satisfy their great requirement and they have to rely on debt financing in our present financing system, so a problem comes out, that is, with consecutive expanding and financing, debt on asset ratio will become higher and higher, and debt relative indexes will get to be more and more worse, so buying enterprises have to face more and more financial pressure and risk, versus worse financial position weakens refinancing ability, and then limits their development and expanding further, it is not good to enterprises' continuous operating and competitive ability rising. So we need modern merger-and-acquisition method, that is, we need incorporation.Yu Haozhou (Accounting) Directed by: Shao RuiQing (Professor) Zeng QiuGen (Doctor)...
Keywords/Search Tags:cash buyout, incorporation, debt on asset ratio, financing
PDF Full Text Request
Related items