Study On Oversea M&A Performance Of Chinese Enterprises

After joining WTO, in order to seek developing opportunity and cope with global competition the China’s enterprises has started a new round of overseas merger and acquisition tide. Among the year of2005to2010,the complete number and disclosed size of China’s overseas merger and acquisition transaction have rapidly grow by95%and211%yearly average respectively. However, the opportunity and risk always coexist, after overseas merger and acquisition some companies not only obtained the strategic resources and expand the international market but also improved their own finance performances, and created the value effects for their shareholders, but another part of enterprises fold the halberd in the overseas merger and acquisition. So how was the overall performance of China’s overseas merger and acquisition? What are the main factors that affect the performances of China’s overseas merger and acquisition? Were there significant different performances between different industries, different markets, different share structures and different regions of China’s enterprises making overseas merger and acquisition? A range of problems not only have become the important issues in academic field, but also the issue that this paper focuses on.On the basis of a review of the theory and practice analysis, This study complete from the following two aspects:First, use factor analysis method to conduct an overall evaluation of financial performance of listed companies involved in overseas acquisitions, and then analyze the overall trend of changes in performance before and after the merger and acquisition; Second, find out the key factors that impact the performance by using multiple regression.The content of this paper includes five parts:The first chapter demonstrates research context, the significance and the innovation. The second chapter relates the FDI theories, the related research achievements at home and abroad are reviewed and evaluated. The third chapter summarizes the situation of our national enterprises’overseas M&A. It describes the history and current situation of Chinese enterprises’overseas M&A and emphasizes the traits of overseas M&A. The fourth chapter is an empirical analysis of the performance of Chinese enterprises overseas M&A. Using the factor analysis method, it establishes the evaluating system of listed companies overseas M&A, makes the performance of domestic listed companies’overseas M&A in2000-2009,and analyzes the factors that impact the performance. The last chapter is to illustrate the conclusions and optimize countermeasures and suggestions for Chinese enterprises’overseas M&A.There are two innovations in this paper:first, using factor analysis method to analyze the performance status of overseas mergers and acquisitions by new data and for Chinese enterprises; second, this study combines factor analysis method and multiple regression method to build a solid way to do the research.This paper indicates that the overall performance of Chinese enterprises overseas M&A good and company size of the acquirer, M&A type, characteristic of the acquirer are important factors that affect the company’s overseas M&A performance.