Property Rights, Government Support And M & A Financial Risk

In recent years,with the rapidly develop of global economy and fierce competition that companies attempt to secure fast expansion has been difficult to achieve.Under such circumstance deepening globalization,an increasing number of companies began to use M & A way to expand their scale and enhance their competitiveness. Enterprises applied M & A as the main method of expanding Market, Moreover spur on enterprises to conduct industrial restructuring and institutional innovation,which regrading as main driving force in today’s enterprise development which has played an more an more important role today. However, China is still in the stage of economic transition, the awareness of property rights protection is weak, Moreover undergone heavy government intervention, which led to Chinese companies mergers and acquisitions with other countries featured by transitional characteristics As transition economies still in the stage of Chinese that enterprises can be divided into state-owned enterprises and private enterprises. According to the nature of property rights, large corporation present two different stance for business decision-making-ownership, structure, and management respectively. M & A business in the process there will be many aspects of risk, including financial risk is present in all stages of the implementation of the merger,which is the most important risk factors.Under such context, the paper selected CRRC and ZNZG two typical company to study, based on the perspective of the nature of property rights to discuss government support mergers and acquisitions of financial risks. This paper describes the background and the process of acquisition of the two companies as well as their pricing risk,Financing risk in M & A, M & A payment of financial risk and financial risk integration risks from four perspectives, and then the two cases separately from pricing risk, payment risk, financing risk and financial integration risks comparative analysis of full around government support for state-owned enterprises and private mergers and acquisitions of financial risks. After the comparison, our country government have been supported a number of mergers and acquisitions, financial risk in M & A state holding enterprises to be significantly lower than private enterprises.