Research On The Relationships Between Government Regulations And Corporate M&As

Under the background of active merger activities around the world, laws, regulations and rules promulgate rapidly. Eespecially the stock market reform carried on smoothly in 2006, the "Company Law", " Securities Law", "Method on market listed Company purchase" appeared one after another, which advanced the Chinese enterprises to merge actively. At present,the regulations system on Chinese corporate M&As has built up. But prominent problems still exist. For example, monopoly, the non- rational investment, the foreign enterprise to control the host country economic lifeline . Therefore, studies on the Chinese corporate merger shows great importance.This paper uses the method of research and empirical studies to examine the relationship between government regulations and corporate M&As .Firstly, It studies the government regulations theory in oreder to explain why M&A need government regulations ; Secondly, reviewing the present research gives us a clear picture about the relationship between M&A and government regulations ; Thirdly it makes a comparison the rules and regulations in different countries; At last it studies the overall scale of our country's merger activity by means of time series analysis and its relationship with government regulations.The result shows the M&As increased with the time, but appeared to adjust motion in 2002 and 2006;The increasing speed and developing speed appear an unsteady characteristic and the increase accompanied with obvious season fluctuation, circulating motion and random undulation. To find out the reason why the characteristic of Chinese listed company's M&A activity appears from 1994 ,the author carry on a study on the mechanism of government regulations. The answer is that deregulation in some industries and the continuously perfection of legal system promote the development of M&A activity.