Theoretical Analysis And Empirical Study Of Multinational Corporations' M&As In China

In order to utilize the advantages brought by multinational corporations' Mergers and Acquisitions(M&As), removing the financing predicaments in some domestic enterprises and introducing the key management and technological experience to get the win-win result, it is necessary to lead the cross-border M&As implemented soundly and orderly in China. Therefore, we need to understand the questions as below: How is the development course of multinational corporations' M&As in China; what are the characteristics of the behavior; what is the reason that M&As developed slowly in the past in China; especially, how is the environment for cross-border M&As and what are the motives that stimulate multinational corporations to implement M&As in China. To answer these questions, this article tries to integrate the theory with the empirical study to analyze the behavior of multinational corporations' M&As in China.On the basis of reviewing domestic and foreign scholars' relevant analysis to the influence factors for foreign M&As, this paper has firstly described the relevant theory of transnational direct investment, M&As and corporate strategically management and the current development situation of multinational corporations' M&As in China, which has established the theoretical foundation to analyze the behavior of multinational corporations' M&As in China. Based on the theoretical analysis, the article has probed into the development course of cross-border M&As in China and the reason that it developed so slowly. It has also analyzed the main features of mode selection, industry selection and regional selection for multinational corporations to implement M&As in China and synthetically studied on the factors that influence the multinational corporations' M&As. Furtherly, a PLS regression method is used to evaluate the environment of M&As in China as well as a statistical factor method to explain the motives and their importance of multinational corporations' M&As. To prove the influence of cross-border M&As, we have taken the state-owned enterprises for example for further study. Finally, the conclusions of the article are as follows: The multinational corporations' M&As in China is in the transitional period from tentatively exploring to prosperous development. The mode of transnational M&As in China are diverse; the key industry is turned to service industry from the initial mechanical manufacturing industry; the region is centered in the east coastal area of China and has progressively trended to the central and west area. China has already created good M&As environment for foreign capitals. The reason that the multinational corporations merge Chinese enterprises lies in the wide potential market of China, and cross-border M&As is a best way to obtain the market rapidly and win the initiative of market competition effectively.