An Research Of The Characteristics And Financial Performance Of Chinese Overseas M&A Enterprises

At the end of2013, UNCTAD issued a report pointing out that Chinese Enterprises had made a remarkable achievement in overseas M&A transactions. At the view of numbers, from the year of2008to the year of2012, Chinese overseas M&A transactions had explosively increased, the total amounts were up from5.37%to12.05%compared to the world, while the total amounts were up from40.19%to46.51%compared to the Asia. On the one hand, the government encouraged enterprises to anticipated the new wave of cross-border Merger and Acquisitions bravely. On the other hand, many enterprises began to show great enthusiasm for M&A. After the "largest M&A of Chinese enterprises in2009", we had better to find out what is the performance behind the M&A transactions? What are the characteristics of these enterprises? Is there a relationship between the above characteristics and the financial performance?Based on the above thinking, this thesis first studies the literature both at home and abroad, then summarize the characteristics of Chinese cross-border M&A enterprises, last applies empirical analysis method to find out the relationship between the above characteristics and the financial performance. In order to evaluate the financial performance of the enterprises correctly, this thesis establishes a comprehensive framework from five aspects, such as the enterprise’s operating capability index, solvency index, profit capability index, profitability of shareholders index, growing capability index. While for empirical approaches, in chapter5this essay applies both factor analysis and t test method to analyze the financial performance of the mentioned enterprises. In chapter6, the essay first classifies the performance according to the enterprises’characteristics, and then applies both t test and regression models to test if there is a correlation between different characteristics and performance. The result indicates that:the overall performance of Chinese M&A enterprises first rises and then drops, and changes significantly.