A Theoretical And Empirical Study On The Motivations Of M&A In China

M&A prefers the merger and acquisition of corporation. Accompanying with theeconomic globalization, the M&A extends from domestic to abroad, then led to theglobal M&A waves. The development of Chinese economic has made great progressduring the last twenty years, and now it has to face the challenge of cross-borderM&A. Therefore, better understanding of the theories, motivations of M&A would bea great help to Chinese business.In this dissertation, I expound both the histories of western countries and China,analyze motivations of M&A primarily with theoretical support of neo-classiceconomics, transaction cost theory, principal-agent theory and capability-based theory.There are some differences among China and western countries on motivations ofM&A. I try to work out what conclude the differences and what we can do to improvethe efficiency about M&A in our country.This dissertation is divided into five parts. The first part set forth the significanceof this paper, and elaborates the definitions and classifications of M&A each partincluding. The second part is related to the histories of M&A in western countries,especially in USA, and the theories of firms, with which we analyze the motivationsof M&A. The third part deals with the motivations of M&A in China and I concludethat it is the ownership structure which leads to the differences. In the fourth partâ… make an empirical analysis and get some results which conform to the theories inchapter three. At last, in the fifth partâ… then give some suggestions improving thecircumstances of M&A on both ownership structure and law systems.