Research On Financial Risk Management Of Chinese Companies In Cross-border Mergers And Acquisitions

With the acceleration of the economic globalization and the Chinese enterprises' scale growth, Chinese enterprises are starting to take cross-border M&As to increase foreign direct investment and develop new strategies in international markets. Cross-border M&As can help enterprises globally optimize the allocation of resources, adjust the market structure, concentration of production factors, improve the size of the business and market competitiveness. But at the same time, cross-border M&As also have all hidden risks. There are very dangerous. There is political risk, cultural risk, legal risk, financial risk and so on, the financial risk is the risk of a variety of mergers and acquisitions on the value of the General reflected, and it is very important for M&As.In this paper, the research has been based on the financial risks of cross-border mergers and acquisitions of Chinese enterprises for the entire process (preparation phase, implementation phase, integration phase), from the perspective of management. First of all, we should identification and analysis the financial risk at all stages. Cross-border M&As of Chinese enterprises have more complex financial risk than domestic M&As, it must be given special attention. Moreover, we must set up cross-border M&As financial risk evaluation index system from the system point of view in all aspects of the overall process. In order to improve the success rate of M&As, we should have a quantitative measure of financial risk. Therefore, this article uses the fuzzy comprehensive evaluation method and analytic hierarchy process, use the Analytic Hierarchy Process to evaluate the targets' weight, build a cross-border M&As financial risk's Fuzzy Comprehensive Evaluation Model based on the causes of the financial risk, in order to measure financial risk of the cross-border M&As. fuzzy comprehensive evaluation of the mathematical model measures the financial risk of the M&As , according to the causes of the financial risk. Finally, In order to specify how to use the model of fuzzy comprehensive evaluation, this paper described the model and analysis by a case, and also presents the control principles to the cross-border M&As financial risk.The novelty of this paper is targeted to study the issue of financial risk management with the particular angle of the cross-border M&As of Chinese enterprises, to strengthen the quantitative analysis of cross-border M&As Financial Risk Management, to explore a number of principles and methods of prevention and control to cross-border M&As Financial Risk, eventually to set up a complete financial risk management system which can be practiced in order to provide a viable path to purpose for the Chinese enterprise Cross-border M&As Financial Risk Management. Enterprises can use the operating system to intuitively evaluate the Cross-border M&As financial risk, and identify the main factors which impact the financial risk, in order to prevent and control them.