Chinese Companies' Overseas M & A Location Choice Research

Since 90s, more and more countries have taken advantage of and relocated global resources by cross-border M&A. During the wave of cross-border, Chinese enterprises also join in the activities. Because it is helpful for our domestic enterprises to carry out"going-out"strategy and display comparative advantages, as well as learn advanced technologies and management from foreign countries.As a developing country, China can't compare with developed countries in size and acceleration of cross-border M&A. Do domestic enterprises carry out M&A activities in developed countries or in developing countries? Where is more favorable location for Chinese enterprises? Where can bring higher M&A revenue? As a result of regional difference, choosing different locations will have a direct impact on investment earnings of companies. Hence, it's a critical for cross-border operation of enterprises to choose a proper location. This thesis tries to analyze the location choice of Chinese companies in cross-border M&A and to put forward reasonable suggestion for location decisions.The paper is divided into five parts. In introduction, it introduces the background and significance of paper, definitions of conceptions, research method, framework and innovation. The first chapter reviews location theories, international investment theories and theories of M&A, and summarizes perspectives of location choice in these theories. In Chapter 2, the thesis introduces the process of Chinese companies'overseas merger and acquisition, describes the situation of location choice of Chinese enterprises, in whole and different industries, and raises the flaw of location choice. In Chapter 3, the thesis analyzes the factor of location choice of domestic enterprises in cross-border merger and acquisition. In the view of source countries, the development of macroeconomic and industries, the advantage, motivation and competitiveness of companies illustrate that our companies should carry out merger and acquisition activities in developing countries. In the view of host countries, every host countries have different conditions, including politics, economy, law, society, nature and technology and so on. These factors also have impact on the location decision of our companies. Hence, domestic companies should think over the condition of their own and the condition of host countries before choosing location. Finally,on the basis of previous analyses, the thesis puts forward beneficial proposals for location choice. First, our government should guide enterprises to decide the proper location. Second, companies invest different locations according to the character and the life cycle of industries. Thirdly, enterprises enhance management and cultivate talents during cross-border M&A.