Research On Efficiency Of Chinese Enterprise Mergers & Acquisition

Nowadays, with the rapid development of the market economy, enterprises are motivated and enticed to change to survive. Merger and Acquisition could be defined as the acquisition of the control power over other firms by property rights trading. In a well-established economy , because of the changing economic environment and fierce competition, merger and acquisition makes the enterprise more successful in risk management and as a result of the action, the enterprises can grow quickly and enlarge its size overnight.From the point of macro economy, merger and acquisition has been very important in the adjustment of our economy structure from the planned economy to the market economy. And from the view of micro economy, enterprises will choose various models to merger or acquisition depends on the specific situation. Merger and acquisition will affect the enterprises in various ways in the long run.This article mainly talks about the motivators and affecting factors and enterprises'efficiency. The introduction outlines the present situation in our country and international environment for merger and acquisition. The first part deals with the leading motivators and principles of the above said action. The second part explains the developmental history and characteristics of the merger and acquisition in China. The third part takes the issues in 2004 as an example and analyses the relations between the action and the enterprises'efficiency. The last part brings up the problems we are facing and gives the author's opinion.