The Study Of The Government's Behavior And Position In M & A In China

The Merger and Acquisition(M&A) is the most intense competition between the enterprises, which is the road to the big business. In western countries, there has been more than one hundred years'history of M&A of firms, while in China, there is only twenty years'practice. But recently, the M&A has developed rapidly, and it will have been the most important way to develop and participate in the international competition for the enterprises in our country. As a result of planned economy system, the government runs the state-owned enterprises and they own the property rights of the enterprises necessarily. Undoubtedly, because of the owner of the company and the manager of the society, they will play an important role in the M&A of firms.And recently, the shortage and lag of institution provision, the governments as the real owner of the state-owned enterprises could do what they want to intervene in M&A of enterprises, which has given rise to a series of problems. Most of the actions have been proved to be inefficient, which hampered the development of M&A.Based on the conditon of China, the M&A is lag of theoretical and behavioral guidance. However, the governments possess special status which makes them not only do something to intervene in the M&A, but also ought to do it. So, it is essential to study and locate the government actions in M&A. Because it can make M&A standardized and promote efficiency of M&A. It has theoretical significance and realistic significance. Therefore, how to treat government intervention during M&A, how to regulate government's behavior and to increase the efficiency and social welfare of government intervention become the focus of this thesis.The whole paper is made up of five chapters.The first chapter is an introduction. It outlines the background and the meaning of the thesis, and then defines the concepts involved in the thesis. Next, it introduces the structure, scope, research method and the innovation of the thesis.The second chapter is the analysis of the theories about M&A and government intervention. Firstly, we make a retrospection of the M&A theories of western countries. The characteristics of five M&A waves and government's roles are discussed. At the same time we give a brief introduction to China's M&A theories and government's behavior in M&A. Then we discuss two hypotheses about government intervention. In the end, the hypotheses are commented by us in details.The third chapter discusses the motion of government intervention in China. We use normal and empirical methods to discuss the inevitability and necessity of government intervention based on the foundation of property rights system, the elimination of state-owned enterprises'"internal control", the substitute for the vacancy of the market system and the regulation of the structure of industry.The fourth chapter studies the effects of the government actions. We list the government actions. To sum up, the government actions have functions as follows: the harmonious function; the substitute for intermediary agent; the protection function. And at the same time, the government can plan and standardize the M&A activities in enterprises. But the government behaviors have some negative effects, because of the existing of seeking behavior, a diversity of administrative purpose and the blind and not scientific policy. Furthermore, the part also discusses what would take place if the government does nothing.The last chapter will do some research on the principles and policy about government intervention. At first, we define the principles of the government intervention in M&A. And then, we learn what role the government should be played. At last, we propose some suggestions to realize the ultimate goal.