Mergers And Acquisitions - Caused By A Case Of Thinking, And Cultural Integration

Along with the deepening of the economic reform and the establishment of modern industrial system in a broader range, and the development of the capital market and corresponding laws, merger and acquisition comes to be a hot spot in our economy. By right of the experience in an annexed corporation-MIANYANG XINHUA ENGINE CO,LTD, the author tries to work over this topic from a new viewpoint, i.e. culture, opens out the interaction between merger and various cultural backgrounds, and thus suggests that the cultural conformity plays a critical role in merger and acquisition . The analysis of this treatise begins with the case of MIANYANG XINHUA. By analyzing the background, motivation, process, result and existing problems of this case, the author puts the economic behaviors on merger into the framework of cultural backgrounds. After the comparison of the relationships between cultural background and merger in the USA and Japan in respectively, the author discusses the interaction between merger and cultural backgrounds, shows the positive effect of cultural factors on merger , and sums up that the cultural conformity is a very important factor in merger . This idea might be instructive both in theory and in practice for the merger and recombination of China's state-owned corporations. In theory, this treatise puts the corporation annexation into the frame of economic analysis. By comparing the china, Japan, where Confucianism dominates, and the USA where Christianity dominates, this treatise analyzes the effects of cultural background and corporation culture on the demand and supply in the merger , especially the effects on the transaction cost and the efficiency of control right, and thus show that cultural backgrounds have great impact on the demand, the supply and the equilibrium of the annexation market. Different cultural backgrounds generate different corporation views, while different corporation views determine the economic mechanism of corporation growth. Consequently, this will lead to the different manners and results of corporation annexation, otherwise, the different demand, supply and equilibrium quantity of the merger market. Following these analyses, the author suggests that as an important non-economic factor, the traditional culture has much effect on the corporation annexation, so we should recognize the importance of the cultural conformity in the merger and recombination. Under the basis of such analyses, the author probes into the importance of the cultural conformity in the merger and recombination of state-owed corporations in china. Moreover, the treatise also discusses the problems of cross-culture management, and indicates that all of the corporation annexation has to come up against the process of reconstruction and consolidation of various cultures. Only by assimilating various cultures into a unified framework according to the management objects of the corporation, can the annexed corporations exist and develop in a unified and harmonious cultural environment. Interiorly, we can improve the efficiency of control right and reduce the transaction cost, bring the competing advantage of merger in to play, and realize the objective of improving the operation benefits. To the date, many economists have investigated the economic mechanism and results of the merger , and developed various theories, but most of them focused on the operation and lesser culture of the corporation, and most of the literatures fastened on the comparison and discussion of the economic attributes. In this way, we cannot treat the numerous economic factors and non-economic factors as a whole in the analysis of merger . Up to now, the research of corporation culture is yet limited to the background, motive, existing manners and developing process of the corporation culture. As an important factor of existing and developing of the corporation, the research of how the corporation culture is influenced by the cultural background to which the corporation is attached is still in juvenility, so the interactio...