The Motives Of State-owned Enterprises, Foreign Mergers And Acquisitions Analysis, And Performance

With the development of globalization since 1990's, cross-border mergers and acquisitions has become the most popular trend. And from 1994, replacing the greenfield investment, cross-border M&As has become the main mode of foreign direct investment (FDI) and the most important impetus to the FDI's development. The UN's World Investment Report (2000 yearbook) considers the wave of cross-border M&As as just the beginning of the combination of world economy, and various nations should make suitable policies for that. China ranks itself as the second biggest country in absorbing foreign investment. But few of them is absorbed by the way of M&As, which makes a big contrast to the international situation. Does this mean that China doesn't need cross-border M&As? Of course not. From this dissertation, we can see that cross-border M&As not only has its own advantages, but also more suitable to the current economic situation in China. With the adjustment of relevant policies, China will see a rapid growth of cross-border M&As cases. So further research on foreign M&As in china is still much in need.Domestic scholars have done much research on this topic, but few of them has made investigation systematically. Liu Lisheng has written a book named ,which is the only monograph about this topic. And I benefit a lot from it. The other person I want to mention here is Ye Qin. His dissertation for doctor's degree also gives me great help. I use his technological analysis method in my dissertation.The title of my dissertation is . It focuses on the microcosmic motives behind the M&As between foreign and state-owned enterprises, not on its environmental factors and macrocosmic motives. When analyzing the macro motives, I use both theoretical and practical methods. After introducing the western theory about the motives of cross-border M&As, I put forward the micro motives behind the M&As between foreign and state-owned enterprises and use many cases to prove my analysis. As to the performance of cross-border M&As, I think that we can make investigation both theoretically and practically. The theoretical study concludes that cross-border M&As is of great benefit to the reform of state-owned enterprises. The practical study concludes that though some cases failed due to various reasons, most cases have achieved success in profit making, market share and so on. This dissertation includes an preface and three chapters. Chapter 1 is the beginning of theoretical analyses of this dissertation. This chapter makes clear of the notions, classifications, content and trend about cross-border M&As and foreign M&As in china. The first section explains the notion of cross-border M&As, and makes clear the definition of cross-border acquisitions.The second section introduces the characteristic and the trend of cross-border M&As since 1990's. We can see that the tide of cross-border M&As will go on from long-term point of view. The last section introduces foreign M&As in China. Due to china's policies, there is big difference in China. The main difference is that foreign enterprises adopt many informal forms to merge or acquire Chinese enterprises, including state-owned enterprises. Chapter 2 analyzes the motives behind the M&As between foreign and state-owned enterprises. The former research indicates that objective firm under-valuation, financially synthetical effect, international environmental changes, market power, economy of scale, management synthetical effect and economy of speed are the usual motives of cross-border M&As. Chinese scholars' research on this subject mainly includes some positive external factors, such as china' rapidly growing market, state-owned enterprises' restructure, industry restructure and local government driving. Based on case study and the theory, this chapter uncovers the distinctive motives b...