Case Study Of Financing Method Of Overseas M&A Of Chinese Listed Enterprise

In recent years,Chinese enterprises are becoming more and more competitive,showing a great enthusiasm in foreign investment.It is a new trend to obtain the market,technologies and resources through overseas M&A.The success of overseas M&A depends largely on whether there are smooth financing channel and optimized financing methods.Compared to domestic M&A,overseas M&A financing is characterized by its amount,which requires a variety of financing methods.Based on previous researches,we find that the factors of overseas M&A financing are diverse and complex.However,the previous researches,especially these of the domestic scholars,often considered from a single enterprise perspective,or from the large sample of the statistical results of empirical studies.Based on the three aspects "Corporate,Industrial,Geographical",our study aims to explore the factors of overseas financing of Chinese listed companies,with a wide range of cases selected,in order to find the common factors of M&A financing and its role path.In the case of sufficient funds,the internal financing is often the first choice for overseas M&A financing.Besides,the capital structure and the industrial cycle of the acquiring firm,the ownership structure of the acquirer and target,and the maturity of the capital market of the host country are also important factors in financing decisions.Of course,Chinese enterprises' financing choices during overseas M&A is not affected by a single factor.The management often takes a comprehensive consideration of internal and external situations,in order to choose a main financing source.There is a lack of innovation in the overseas M&A financing process of Chinese enterprises.The main financing methods of Chinese companies are traditional bank debt financing.It is suggested that the relevant departments should improve the policy system,encourage the listed enterprises to innovate financing channels and methods,reduce the financing cost to relieve the worries of Chinese listed companies in their process of internationalization.