Research On The Performance Of Cross-border Mergers And Acquisitions Of Listing Corporation In China

Economic globalization has become the trend of economic development, andMulti-National Corporation plays an important role in the process of economic globalization.With China’s accession to WTO, Chinese enterprises deeply participate in the world market.More and more Chinese listing Corporation "go abroad" to seek mergers and acquisitions. Inrecent years, China has entered the active phase of cross-border mergers and acquisitions. Atthe same time, its scale and value are not only increasing but also being diversified. However,transnational merger&acquisition of Chinese listing Corporation road doesn’t go smoothly,and there are failure cases everywhere. While, is Chinese listing Corporations of success orfailure after cross-border mergers and acquisitions, what changes of the operatingperformance have taken place, and how to improve the business performance after M&A?This paper attempts to use the accounting method, selects the appropriate financial indicators,and constructs the model of principal component analysis to answer the above questions.First of all, this paper summarizes the related theories of cross-border M&A, andanalyzes the present research situation of domestic and foreign theories on transnationalmerger and acquisition. From the aspects of scale, pattern, industry and regional distributionof M&A, this paper analyzes the present situation and characteristics of cross-border mergersand acquisitions of listing Corporations in China. At the same time, in order to fully show thetrend of cross-border M&A, this paper analyzes motivations for Chinese enterprises toactively participate in cross-border M&A from external and internal factors.Second, in the part of empirical analysis,10financial indicators of30listing Corporationcross-border M&A events are selected from the profit ability, debt paying ability,development ability and operation ability. Then, principal component analysis method is usedto analyze the performance changes of Chinese listing Corporation cross-border M&A aremade from2003to2009.Finally, basing on the evaluation of the empirical analysis results, it puts forwardreasonable suggestions to improve the performance from the macro level and the enterpriselevel. Hope to provide some reference to the development of Chinese outbound M&A in thefuture.