Research, Cross-border M & A Characteristics Of Chinese Enterprises And Their Performance

Compared to developed countries, Merger and Acquisitions of Chinese enterprises had a late start. Entering the 21st century, Chinese enterprises began to show enthusiasm for cross-border Merger and Acquisitions and set off a new wave of cross-border Merger and Acquisitions in 2009. Geely Automobile conducted a 1.8-billion acquisition of Volvo, known as the "largest Merger and Acquisition of Chinese enterprises in 2009." Years 2000 to 2009 are the ten years of cross-border Merger and Acquisitions of Chinese enterprises rapid development, but what is the current situation? Meanwhile, from a global point of view, despite the wave of Merger and Acquisitions around the world, less than one third succeeded. What is the performance behind the transactions?This thesis aims to answer these questions:"what are the characteristics of these Merger and Acquisitions?", "what are the differences before and after the transaction? ", and "is there a correlation between different characteristics and performance?". The thesis provides information and guide for Chinese enterprises transactions through the study of their characteristics and performance during the recent 10 years.Based on the research results at home and abroad, this thesis uses empirical analysis and summarizes the characteristics of cross-border Merger and Acquisition conducted by Chinese enterprises. The thesis establishes a comprehensive evaluation framework on the analysis of the enterprise's profit capability, solvency, operating capability, profitability of shareholders and growing capability, to evaluate the financial performance of Merger and Acquisitions. Empirical approaches, such as factor analysis and paired-t test are used to analyze the financial performance of these Merger and Acquisitions. The thesis then classifies and researches on the performance with different characteristics, and tests the correlation between different characteristics and performance using regression models. The analysis indicates that: the overall performance of Chinese enterprises through Merger and Acquisitions first rises and then drops, and changes significantly. Among them, there is a negative correlation between performance and locations, a significant positive correlation between performance and locations, and a significant negative correlation between performance and methods of payment.This thesis aims to have some innovations in the following three aspects:1. Expand this field of empirical research.2. Open up new sources of data and collect research samples by the international authoritative database of BvD.3. Utilize all kinds of scientific research methods, with prominent integrity and scientific level.