A Study On Performance And Strategy Of Cross-border Mergers And Acquisitions In China

Mergers and Acquisition ( M & A ) is one of the important phenomena in market economy . and the unprecedented development of Cross-border M & A has become the vital form for multinationals to implement their strategy of global expansion. It accelerates the integration of international economy and improves the economic environment in the world. Along with the surge of M & A, the trend of economic globalization is breaking through the market border of every sovereign country. After entering the WTO, China has quickened its step to catch up with the process of globalization, and thus it not only induces the integration of international and national capital but also boosts the development of Cross-border M & A in China. The rapid change of the international investment mode influences China greatly: it adjusts the current economic structure, modulates the policy and economic environment to attract the foreign capital and therefore deepens the extent of market economy in China.This paper uses economic theories to analyze characteristics and motives of Cross-border M & A. Then the efforts have been made on making an empirical demonstration of the performance of Cross-border M & A from the existing cases. Finally it discusses on the trend of M & A and the corresponding strategy and tactic.The whole paper is divided into four chapters as follows:Chapter. 1 reviews the definitions, the types and the brief history of Cross-border M & A in the last few decades. Statistics shows that M & A not only occupies the largest percent in the total number of FDI in the world economy but also promotes the economic development of China.Chapter.2 states the motives of Cross-border M & A and the corresponding theories on FDI. In order to survive in the severe competition, maximize its profits and optimize the resource distribution in the world, many multinationals attach great importance to M & A . These theories lay a foundation on the latter chapters.Chapter.3 is the key chapter. After describing the method and standard of corporation performance appraisal, it investigates the performance of Cross-border M & A in China through Factor Analysis. The results indicate that the performance of Cross-border M & A in China has experienced a waving stage. After M & A, with the recombination of the resources and expansion of the production, the performance of the corporations rises up stage by stage. Though some cases failed due to various reasons, most cases have achieved success in profit, market share and so on. While the long-term performance should be studied further. Based on the conclusion above, this chapter also illustrates the positive and negative effect of the Cross-border M & A and its existing problems.Chapter.4 analyzes the trend of Cross-border M & A in our country, the chances and challenges it brings to us. It also expatiates the strategy and tactic of our country from the perspectives of enterprises and the government.