Study Of The Risk Of Cross-border Mergers And Acquisitions Of Chinese Enterprises

Western developed countries have cultivated a great number of large-scale enterprises through the mergers and acquisitions (M&A), and have controlled largest global market share. With the development of economic globalization and China's entry into the WTO, Chinese enterprises will face fierce international competition. Meanwhile, many of them have established international development goals, in the hope of overseas expansion. It is very meaningful and important not only for our macro-economy to enlarge the scale of Chinese enterprises in order to participate in the international competition, but also for our micro-economy to develop the M&A market, and to take full advantage of the flexible market allocation of resources in order to realize that only the fittest survive and optimize the industrial structure.M&A is a kind of market-oriented business practice, so there are potentially huge risks under the significant expected benefits. The targeted enterprise of M&A transaction is a complex integration of dynamic assets including technology, personnel, equipment and market. Furthermore, the Cross-border Merger and Acquisition (CBM&A) will face many other external changes including political, economic, legal, and cultural differences and risks. Therefore, it has become a pressing task to analyze the possible risks happening during the CBM&A procedure, utilize the experience and skills of foreign M&As'risk prevention measures, study the effectiveness and safety issues of Chinese enterprises'CBM&A, and finally establish suitable required risk prevention mechanism for Chinese enterprises'overseas development.This article is composed by three parts,and its main content and perspectives are as follows:PartⅠ:Enterprise's M&A theory and reality. This part firstly introduces the international direct investment theory and the theory of enterprise's...