The Empirical Research On M&A Of Chinese Enterprises By Foreign Capital

With the globalization of world economy and the growth of science and technology, transitional corporations have carried on more and more FDI by cross-border merger& acquisition which has become the most importan form of FDI presntly. Since the 1990's,foreign capital has been flowed into our country mainly by way of M&A. China became a formal member of the WTO in December 2001, and undertake to extend the investmen range. At the same time, the reform of state enterprise also offers objectives for foreign capital M&A. Recent years,the foreign capital M&A has become more and more energetic.Foregn capital M&A has a lot of positive effects for our conuntry, such as, supplying new source of cash, pushing on technological improvment and industrial upgrade and so on.. However, the fundamental purpose of cross-border M&A is to seek profits and industrial control. On other hand the competition exists in market, intellectual property, patent and technologica toute,which affect the development direction of chinese economy, and take the negative effect . Foreign capital M&A of domestic enterprise means both opportunities and challenges. It is suggested that China should manage foreign capital M&A with rationality, while it adopt foreign capital actively, reasonably and effectively. Under these circumstance, the reasearch of foreign capital M&A has more practical significance.This thesis first introduce the theories of foreign capital M&C, then gives an introduction of foreign capital M&A, summarizing the motive ,couse a pattern of foreign capital M&A of domestic enterprise. Then, the paper analyzes positively foreign capital M&A of Chinese enterprise in the valuation perspectives. Based on a group of financial indexes, which show the influence of foreign capital M&A, the paper employs the factor analysis, and analyzes the effect to the benefit correlation which involves in the process of foreign capital M&A. After that, elaborates the effect of foreign capital M&A Chinese enterprise unify with the actual of China, the, analyze the traits of foreign capital M&A of domestic enterprise which proves the content above. At last, the paper put forward the countermeasures.