A Study Of Cultural Integration For Chinese Enterprises In Transnational M&A

Since the beginning of the 1990s, transnational M&A has gradually become the main international direct investment of global. According to the UNCTAD's analysis, from 1980 to 1999, global M&A increased with the average annual growth rate of 42%. Particularly during 1998 and 2000, its share had been over 80% of global GDP by 1996 the proportion was less than 1% to 3.4%. Although access to 2001, global mergers and acquisitions upsurge nose-dive, transnational mergers and acquisitions in 2000 compared with the overall size drastically reduced. However, transnational M&A started up in 2004, the first six months of 2004 compared with the same period in 2003 increased by 3%. Transnational M&A can make various large enterprises use the favorable conditions and advantages to steer clear of overseas markets' barriers, access to and expand overseas markets, and gain the economy of scale effects quickly. But according to surveys, there are 60%-80% of happened transnational M&A activities are unsuccessful, at least in financial terms. Many reasons resulted this, but the lack of effective integration of different enterprises' culture is the most important reason. Coopers& Lybrand (1992) investigated 100 unsuccessful M&A companies, found that 85% of the CEO admitted the main reasons of unsuccessful M&A is the difference of management style and corporate culture. So the enterprises' cultural integration is the most difficult integration for the M&A enterprises. In recent years, along with the strategy of Chinese enterprises to "go out", a number of...