Motivation And Performance Analysis Of Cross-border Mergers And Acquisitions Of State-owned Enterprises In China

As early as in 1984,at the Third Plenary Session of the Twelfth Central Committee of the Communist Party of China,the implementation of "opening to the outside world" was defined as the basic national policy.Over the past 30 years,China's adherence to the policy core of opening to the outside world-"introducing" and "going out" have achieved remarkable results.In 2017,the nineteen Party of the party clearly put forward the need to promote a new pattern of comprehensive opening,focusing on the construction of "one belt and one road",and adhering to "bringing in" and "going out" equally,and strengthening open cooperation.State-owned enterprises are the important material and political basis for promoting national modernization and guaranteeing the development of national undertakings.They are also the main body undertaking the implementation of national strategies.More and more state-owned enterprises are acquiring advanced technology,well-known brands and markets through cross-border mergers and acquisitions,and reshaping the position of Chinese enterprises in the global industrial value chain.Therefore,it is very important to study the performance of our state-owned enterprises in the implementation of cross-border mergers and acquisitions.Scholars at home and abroad have done a lot of research on the performance of transnational mergers and acquisitions.However,the scope of the existing research is too broad and the object is relatively complex.Few studies are specifically focused on cross-border mergers and acquisitions of state-owned enterprises.The case analysis method is used to study the motivation and performance of cross-border mergers and acquisitions of state-owned enterprises in China.Therefore,the study on the motivation and performance of cross-border mergers and acquisitions of state-owned enterprises in China is chosen as the topic of this paper.After analyzing the research status of transnational mergers and acquisitions at home and abroad from three aspects: the definition of connotation of transnational mergers and acquisitions,the motivation of transnational mergers and acquisitions and the performance of transnational mergers and acquisitions,this paper introduces the theoretical basis of transnational mergers and acquisitions related to transaction cost theory,diversification theory,synergy theory and scale economy theory.Then,through the statistics and analysis of the regions,scale and types of the target companies of cross-border M&A of state-owned enterprises in China from 2006 to 2017,this paper reveals the status quo of cross-border M& A of state-owned enterprises in China,and then analyses the motivation of cross-border M& A of state-owned enterprises in China and selects representative case enterprises.After introducing the general situation of the companies of both sides of M&A,reviewing the M&A events and analyzing the motivation of the M&A of the case companies,this paper uses the method of event study and the combination of qualitative and quantitative methods to analyze the short-term and long-term impact of the cross-border M&A on the case companies respectively.Based on the problems found in the M&A,some suggestions are given to the case company,such as deepening the reorganization and integration,rational allocation of resources,timely recovery of accounts receivable,scientific management of inventory,etc.In addition,from the government level and enterprise level,the paper puts forward some suggestions on improving the operation efficiency of state-owned enterprises,improving the financial system,strengthening the integrated management of mergers and acquisitions,and reasonably choosing the means of payment.