Research On Choosing The Target Country Of Chinese Enterprises' Cross-border Mergers And Acquisitions

With the rapid development of economy,China has gradually completed the transformation from net capital importing countries to net capital exporting countries.In this process,cross-border mergers and acquisitions have become one of the most important paths for Chinese enterprises to go out.In the process of cross-border mergers and acquisitions,the choice of target country is undoubtedly a key decision variable.Under the framework of FDI's classical theoretical model and based on the perspective of cross-border mergers and acquisitions in developed countries,western mainstream school expanded the determinants of choosing the target country in cross-border mergers and acquisitions from the dual dimensions of theoretical and empirical research.Those studies have laid an important foundation for deconstructing the determinants of choosing the target country comprehensively.But with the development of economic globalization and the new changes in the world economic structure,the enterprises? status and role of the developing countries,including China,in the global economic resource allocation are significantly enhanced.The choice of target country in developing countries' cross-border mergers and acquisitions becomes a new proposition.Domestic academia has paid close attention to this.However,the existing researches are mainly based on the deep analysis of the successful cases of Chinese enterprises' cross-border mergers and acquisitions,and describe the basic principles and influencing factors of choosing the target country of Chinese enterprises' cross-border mergers and acquisitions.Based on the investment Gravity Model,this paper uses the 'analytic hierarchy process' to construct the determiner analytic model of choosing the target country in cross-border mergers and acquisitions by macro,meso and micro three levels.This paper uses data on Chinese enterprises' cross-border mergers and acquisitions during 2001-2015 provided by Thomson Reuters SDC Platinum database as the study sample,to systematicly analyze the determinants of the location choice of Chinese enterprises in the process of cross-border mergers and acquisitions,and give the theoretical support and policy recommendations for Chinese enterprises' cross-border mergers and acquisitions.The empirical results show that,the scale and potential of host country's economics,the scale of host country's financial market,the concentration ratio of host country's industrial structure and other factors have a decisive impact on choosing the target country of the cross-border mergers and acquisitions;the distance factor has reverse effect on the choice of the cross-border mergers and acquisitions;the bilateral political differences affect weakly on the result;In addition,the effect on the exchange rate of host country,the tax rate difference between the two countries and the enterprise international competitiveness of host country shows the uncertainty and requires the analysis based on specific environment and details.Based on the above analysis results,this paper summarizes a series of policy recommendations for the integrity and further development of Chinese cross-border mergers and acquisitions from the standpoint of government,industry and enterprise.