Effect Study Of Monopoly On Transnational Mergers And Acquisitions Of Listed Companies In China

As a common means of oversea investment for transnational corporations, transnational mergers and acquisitions, generally speaking, is one corporation in one country (the M&A corporation) take over the whole asset and controlling stocks of another corporation in another country (the targeted one) by a certain channel and payment, which involves the economic interactions between two or more than two corporations. It has existed for 113 years since the first M&A began and currently it has become the prevailing means for oversea investment.Cross-border M&A has appeared since 1990 in China. At that time, transnational corporation merged and acquired the state-owned enterprises by holding stock rights. A good case in point is the M&A of "Zhongce Company" in 1992. With the increasing development of Chinese economy and optimization of investment environment, more and more multinational corporations have entered Chinese market via merger and acquisition. The rising and booming stock market especially has provided opportunities for transitional corporations to merge and acquire Chinese leading corporations—listed companies. Looking through the history of Cross-border M&A in China, we can find that M&A have not only brought huge capital, advanced technology and effective management methods, but also promoted the growth of Chinese economy. Meanwhile, with the strengthening of Cross-border M&A, the effect of monopoly begins to emerge as well. Base on this background, this paper is going to analyze the reason, current situation, trend and effect of monopoly of M&A, all in an effort to put forward some advice on how to handle the merger and acquisition trend.The overall organization of my paper is as follows: Chapter 1 is the introduction, in which I stated the background and methodology of my research. Chapter 2 is the theory and development of the M&A in transnational corporations and the relationship between M&A and monopoly. Chapter 3 discusses the current situation, reasons and trend of merge and acquisition, pointing out monopoly may disguise in M &A. Chapter 4 is the extension of chapter 3, in which accounting analysis was used to prove the evil motivation of Cross-border M&A, which consequently has led to monopoly effect. Chapter 5 is the conclusion part, in which some workable methods that can minimize the effect of monopoly were put forward.