Research On Chinese Enterprises Transnational Merger And Acquisition Transactions Stage Risk Assessment

As the rapid growth of China’s economic strength，the transnational merger andacquisition(M&A) has become an important way of our country enterprise capitalexpansion in the global scope. Although China’s enterprises transnational mergers andacquisitions have been expanding, the overseas merger and acquisition are more frequentlosses. The situations in the process of transnational mergers and acquisitions are complex,in different stages of M&A, type and influence factors of risks are not the same. So justaccording to different characteristics of stages of M&A targeted evaluation of risk, couldhelp enterprises formulate the M&A strategy and make more reasonable plans.The transaction stage of M&A plays an important role in the process of transnationalmergers and acquisitions, and directly relates to the success or failure of the enterprisemerger and acquisition. Therefore, to establish a set of risk assessment for China’senterprises transnational M&A trading phase quantization method, to improve our countryenterprise risk coping ability, have very important realistic meaning to increase the successrates of M&A. There are many researches about the transnational merger and acquisitionrisk evaluation from domestic scholars, but few about the real and transnational M&Atransactions stage. So this paper combines the characteristics of Chinese enterprisestransnational merger and acquisition, and establishes a risk assessment system oftransnational M&A transactions stage, which has important theoretical significance.This paper first analysis the risk present situation of Chinese enterprise’s cross-borderM&A transactions stages, based on the previous model of evaluation, and determines therisk dimensions of transnational M&A stage. Then carried out for each dimension of theimpact risk factor analysis one by one, to find out the risk assessment indexes which canreflect each dimension of the connotation of risk response more clearly, then establishes oftransnational merger transaction stage covering the risk evaluation system ofcomprehensive. This paper also collects the93cross-border M&A cases between2011and2013, uses entropy method of objective weighting, and gets the weights of the various risksin the M&A transactions in the calculation, to provides a structured evaluation results forenterprises.