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Cross-border Mergers And Acquisitions Of Economic Analysis

Posted on:2003-10-24Degree:MasterType:Thesis
Country:ChinaCandidate:M C CuiFull Text:PDF
GTID:2206360065460827Subject:International trade
Abstract/Summary:PDF Full Text Request
Transnational Merger&Acquisition(M&A), which has developed rapidly, is one of the most remarkable phenomenons during the developing process of world economy. It is one manner of the Foreign Direct Investment(FDI) from the macrocosmic point of view, however, from the microcosmic point of view, it is sheer M&A behavior of enterprise which strides border,and it is one of the creating-value behaviors which is up to the goal of maximizing the value. Different from the theory of value chain presented by Michael Porter, this article shows that the basic linkages of transnational M&A value chain consist of the motive of transnational M&A, the value evaluation of the target, the selection of financing and payment.The motive of transnational M&A is the first linkage of the value chain. Combined by the M&A theory and the FDI theory, this article, on the basis of the eclectic paradigm of Dunning, shows the four-advantage theory in transnational M&A as theoretical frame to analyze the motive. The value evaluation of the target is the other linkage of creating value in transnational M&A. This article argues that the free cash flow model (FCF) is more suitable for the value evaluation, and then, in response to the special risk of country and exchange ratio, corrects two sorts of FCF model to enhance accuracy of the value evaluation model. The selection of financing and payment is also one of the essential value linkages. This article shows that it is essential to maximize the value through designing of financing and payment and optimizing capital structure. In the end, with the universal theory of value chain of transnational M&A, this article presents our enterprises with some policies in transnational M&A.
Keywords/Search Tags:Cross-border
PDF Full Text Request
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