Government Behavior In Mergers And Acquisitions

From a transition of central-planning economy to a market one, China takes its transitional stage .M&A in China is under the situation of gradually decreasing administrative intervention along with the gradually aggrandizing market forces. M&A is only too necessary to enhance Chinese economy, especially in the background which state-owned sector are facing significant adjustment since M&A is a kind of 揷ost-minimized reformation?to the social and economic system. The whole paper is made up of 4chapters. The first chapter introduces the theory of the government function, and indicates the effect of the government behavior. This chapter also studies western M&A theories, and reveal their hypothesis on government behavior. Chapter Two analyses the history of the Chinese M&A and the function of the Chinese government. It makes a full research in Chinese government in M&A and raises some important questions. The third chapter mentions several experiences of western countries? government. And then it comes to five conclusions. Although there are a lot of difficulties may come across to China, we can look into the prospect of M&A in China market-oriented mergers will come into reality.