Explore Cross-Border Mergers And Acquistions Theorees From Multiple Perspectives

After the1980s, the fourth and fifth waves of M&As that were dominated by cross-border M&As not only had a profound impact in the world, but also caused some enterprises’reflections in each country. In order to catch up with the pace of economic development in the developed countries and have a position in the world economy, multinational enterprises in the developing countries had carried out prominently FDI in the national satge, and cross-border M&As had become the first choice of FDI due to its obvious speed advantage, especially transnational corporations in the developing countries acquired local companies in developed countries in recent years, such as Volvo’s acquisition by Geely, Datespace"s related business being acquired by Mindray and Wolong acquiring ATB Group in the Austria. These M&As activities provided a quick access to the entrance and channel of its strategic resources and also had a significant impact on the market economy in the world. With the continuing increase in cross-border M&As’numbers, academics have carried out in-depth research from multiple angles and there have been a number of related theories or opinions. These studies cover a very wide area and the level is very complex. However, academia has not yet combed systematically M&As’ related theories which are partly intertwined and overlapping, particularly the relationship among theories and evolution laws. Furthernore. these theories do not form a clear theoretical framework, especially the M&As studies of the developing countries. Therefore, there is a lot of blank areas that require the academic attention.The paper carries out a detailed interpretation on major M&As theories and combines the historical background to comb them from multiple perspectives after collecting two hundred research articles or monographs. Then, the paper sorts and analyses data about125private enterprises in Zhejiang and Guangdong that have had M&As before in June2013. What’s more, by doing field research in dozens of companies, we collected30valid questionnaires, improved the existing database, and finally verify and add my pre-done summaries. The main research showed that:①The paper suggestions that the theoretical roots of cross-border M&As are from domestic acquisitions theories, the theories of foreign direct investment and a combination of both.②Foreign direct investment theories have four evolution trends, including from the mainly static studies in the beginning to the mainly dynamic studies later, the main study objects from developed countries to newly industrialized countries and developing countries, from the mainstream theories to the development theories associated with main theories and the foreign trade modes from exporting to foreign direct investment.③Monopolistic advantage theory, location theory. internalization theory and comparative advantage theory has important theoretical and practical significance, later theoretical research about transnational mergers and acquisitions evolved basicly from their essential content.④the fourth M&As wave that were dominated in leveraged buyouts was mainly due to the conflict between managers and shareholders or managers’ pride psychology. Free cash flow and ego hypotheses explained this phenomenon. Control efficiency and comparative advantage coupling hypotheses explained the fifth strategic acquisitions wave. At this stage, most M&As had crossed borders and developing countries had begun to implement "catch-up strategy" international pressure under the pressure of the international economy.⑤The cross-border M&As’microscopic motivations in developing countries mainly are transferring outdated technoloy and seeking market and then gradually beginning to seek strategic asset which can achieve mutul promote between industrial restructuring and upgrading.Based on the research on overseas trade, domestic mergers and acquisitions and foreign direct investment theory, and particularly according to the relevant principal theories, this paper mainly summarizes the following several innovative points. Firstly, the paper clearly distinguishs the intrinsic relationships among domestic M&As, foreign direct investment and cross-border M&As. Secondly, This paper illustrates the evolution trends of the foreign direct investment theories from the static and dynamic aspects, the object levels, mainstream and non-mainstream levels and external trade level. Thirdly, the paper summarizes that acdemic studies went through a process gradulaly relaxing the assumes of neoclassical economics in every M&As waves. These assumes included from the imperfectly competitive markets to efficient differences among enterprises, and then to exist agency problems between the shareholders and managers, which answered the reasons that corporates mergers and acquisitions from different levels. Fourth. Based on the summaries about cross-border M&As’motivation and effection in different multinationals separately from the micro and macro perspectives, and combing with unique characteristics of Chinese enterprises, the paper proposes the different motivations that multinational companies mergers and acquisitions overseas. What’s more, the article summarizes several conclusions and limitations, and also discusses the future hotspots and the feasibility studies. The paper will provide valuable suggestions. In addition, it will has a certain practical significance to solve some new problems on cross-border M&As.