Research On Location Choice Of Chinese Enterprises' Cross-border M&A

Greenfield investment and transnational mergers and acquisitions are the way of foreign direct investment,the current global FDI is dominated by transnational mergers and acquisitions.Since Chinese have been reforming and opening up,Chinese economic develops rapidly and the degree of opening to the outside world also gradually deepened,Chinese enterprises frequently develop transnational mergers and acquisitions.As the amounts or the sum,Chinese enterprises get great achievements in global M&A markets,which is marvelous.In the practice of the enterprises' cross-border mergers and acquisitions,location choice is the important problem enterprises faced.It has direct affections to the exertion of enterprises' advantage and the enterprises' overall international distribution of production,and then influences the enterprises' profit and success or failure in the foreign direct investment activities.At the same time,the problem of location selection also has durability,zone bit of mergers and acquisitions can hardly change if it was established,so enterprises should be cautious and use the scientific method when making a strategic decision.The history of China's enterprises to develop cross-border M&A is only about 30 years,large-scale mergers and acquisitions was only started in recent years.Enterprises are lack of experience about M&A and have many problems about the location choice.So it has important theoretical and realistic significance to study the location choice of cross-border M&A of Chinese enterprises.This article started with the history of Chinese companies developed transnational mergers and acquisitions.There is still exist some problem,we need to solve it.In this paper,the first and second chapter mainly introduce the selected topic's background and significance,define the related concepts as well as summarize the existing researches.The third chapter first describes the characteristics of three stages of the location selection when Chinese enterprises make cross-border M&A,it concludes that the current location distribution of Chinese enterprises overseas mergers and acquisitions investment mainly in Asia,Europe,the United States and other developed countries,and investment of cross-border mergers and acquisitions to underdeveloped areas is less.The fourth chapter mainly analyzes the related factors influencing the Chinese enterprises' cross-border mergers and acquisitions.Based on three motivation,to seek the market,to seek resources and to seek strategic resources,The fourth chapter considers its six related factors.Fifth chapter chooses 20 countries' 2005-2016 panel data which are more active to have cross-border mergers and acquisitions with Chinese enterprises and uses empirical analysis to analyze factors affecting the enterprises' location choice of cross-border M&A in our country to prove that the size of the market in host countries,abundance of natural resources,strategic resources' availability,capital markets' development degree have positive correlation with cross-border mergers and acquisitions,but the host country tax levels has negative correlation with it,and the geographic distance between the host country and China has unclear impact on cross-border mergers and acquisitions investment.Chapter 6 puts forward some suggestions for the problem of enterprise location choice of cross-border M&A in our country,mainly about the enterprise itself and government.Suggestions to enterprise itself is mainly about location choice's diversification,choosing the low-risk countries in the presupposition of clearing motivations of M&A,cultivating professional and technical personnel,promote the international reputation of the enterprise,etc.Suggestions to government departments are to perfect the relevant laws,to expand the financing channels,and to perfect the intermediary organ,etc.