Researches On Financial Problems Of The State-owned Enterprise's Merger & Acquisition

Under the influence of the planed economy system, there are many problems in the State-owned enterprises, such as inseparable functions of government and enterprises, obscure property rights fuzziness of rights and responsibilities and inefficient management etc, which lead to out-of -date facilities, deficiency of technology innovation, and low efficiency of investment, etc.Not only China, but also the rest of world face to the problems of reforming the State-owned enterprise. Taking a general view of the world, we found that although the situations are difference from different country, the model of reforming the Stated-owned enterprise is almost the same. They take use of the M&A to transform the Stated-owned enterprises to civilian enterprise or joint-stock limited companies. According to successful experiences from other country, the M&A plays an important role in reforming the State-owned enterprise.In recent years, China has taken use of the M&A to reform the State-owned enterprise. However, there are some financial problems within the M&A of the State-owned enterprise. The existence of these problems had bad effect on the M&A, and hindered the progress of the economic system reform. In serious situation, it will increase the risk of instability in economy.This paper reviews the history of the M&A in china, and analyzes the current situation of M&A in China connecting with the situation of State-owned enterprises. Furthermore, it summarizes some financial problems from the M&A of the State-owned enterprise. After that, it finds out the courses of these problems, and brings out some suggestions in solving these problems with using the theory in financial area.