Premium Impact Factors On China's Cross-border Mergers&Acquisitions

China has vigorously promoted "going global" overseas development strategy since 1999.It not only attracted a large number of foreign investments,but also showed Chinese positive attitude towards overseas investment.In order to meet rapidly-increased economic requirement,China has to decide going abroad to acquire energy resource,learn high-tech technology,and improve management skill.That's the reason why Cross-board M&A has become the main mean of foreign direct investment(FDI).Most of the previous studies focused on the impact of M&A on corporate performance,or the influence of acquisition premium from different payment methods.There are few studies interested in the unique impact factor of China's cross-border M&A premium due to immature acquisitions environment of emerging countries.And most of those studies are cases or theoretical analysis,lacking empirical support from large data.My report utilized cross-border M&A data of both developed countries and China in 2002-2015 from Thomson database to conduct comparative research.Through descriptive statistics,this paper verifies that China's overseas M&A premium is higher than that of the traditional developed countries.China's M&A waves and the "Chinese Premium" phenomenon create an opportunity to enrich the existing literature in terms of acquisition premiums.This study compared IMA cases before and during "12th Five-Year Plan" period to find out acquisition premium of "Strategic industry" is slightly higher than other industries'.Moreover,in the context of "institutional reform",state-owned enterprises have higher premiums than private ones due to the special financial support and information asymmetry from long distance.This paper also examines the M&A premium of the M&A parent company for the state-owned enterprise and the private company,which is higher due to the separation of distance,ownership and management rights and conflicts of interest.This paper enriches the data of overseas M&A.by comparing with developed countries,discusses where unique cross-border acquisition premiums derive from.