Research On Financial Risk Prevention Of Transnational Merger And Acquisition In Chinese Enterprises

In recent years,the global economic downturn,China enterprise accelerating trend.During the "12th Five-Year" period,the scale of China's foreign direct investment is 2.3 times that of 11 th Five-Year.At the end of 2015,China's foreign direct investment stock exceeded the trillion dollar mark for the first time.Chinese enterprises' cross-border mergers and acquisitions are frequent and the amount of mergers and acquisitions has reached a new high.But mergers and acquisitions are both opportunities and risks.Statistical data show that only 20% of transnational mergers and acquisitions in Chinese enterprises can be truly successful,far below the level of Western and Japanese enterprises in western countries.Chinese enterprises should face many risks during the process of transnational merger and acquisition,and financial risk is the comprehensive value of various mergers and acquisitions.Reflect.the financial risk control of transnational mergers and acquisitions in China by combining theory and case study.This paper first describes the relevant theories of financial risk of mergers and acquisitions,including mergers and acquisitions,merger,financial risk,,financing risk,payment risk,integration risk.Then,this paper analyzes the current situation of Chinese enterprises' cross border mergers and acquisitions and the control status of financial risks,and points out the main reasons for the formation of financial risks in cross-border mergers and acquisitions.This paper adopts a combination of theory and case to further study the prevention of financial risks in the process of cross-border mergers and acquisitions of Chinese enterprises.First of all,this paper expounds the theoretical basis of transnational merger and acquisition,including transnational merger and acquisition,financial risk of transnational merger and acquisition,the content of financial risk of transnational merger and acquisition,and points out the causes of financial risk on the basis of related theories.Then,this paper summarizes the current situation and characteristics of Chinese enterprises' cross border mergers and acquisitions,and analyzes the problems existing in the financial risk prevention of Chinese enterprises.Then it expounds the process and motivation of the merger and acquisition of GE home appliance in Qingdao Haier.Through the analysis of the financial risk and financial risk of this case,it summarizes the shortcomings and successful experience of the case,and puts forward practical and feasible financial risk prevention measures in combination with the actual situation of Chinese Enterprises.The greatest significance of this article is through the combination of theory and case,through the in-depth study of the financial risks faced by the various stages of the merger and acquisition,and put forward specific measures to deal with the financial risks,and help the Chinese enterprises to improve the ability of cognitive risk and improve the success rate of cross-border mergers and acquisitions.