Research On Financial Risks Of Cross-border M&A Of Listed Companies

In the context of economic globalization,many Chinese enterprises through cross-border mergers and acquisitions to improve their own competitiveness.Through cross-border mergers and acquisitions,Chinese enterprises can often acquire advance technology,expand business scale and explore international markets.Because of cross-border M&A is facing strange market environment,therefore Chinese enterprises will encounter many potential challenges.At different stages of cross-border M&A,enterprises need to deal with different financial issues.If an enterprise lacks experience in cross-border M&A,it is easy to mishandle financial risks in mergers and acquisitions,which will hinder the development of the enterprise and even cause inestimable losses.Therefore,enterprises need to have a clear understanding of the financial risks of M&A and avoid financial risks of M&A properly,in order to achieve the purpose of M&A and get better development.This thesis expounds the related concepts and theoretical basis of cross-border mergers and acquisitions of listed companies,and makes an in-depth analysis from the identification and causes of financial risks of cross-border M&A.Through the case of Nanjing Xinbai merger and acquisition HoF,this thesis analyzes the financial risks in the preparation stage,implementation stage and completion stage of M&A in detail.Then,a series of financial indicators are comprehensively analyzed by principal component analysis,and the changing trend of financial risk before and after M&A is analyzed,which directly reflects the financial impact of M&A activities on Nanjing Xinbai.Finally,according to the results of Nanjing Xinbai cross-border M&A,this thesis obtains the enlightenment in cross-border M&A.Firstly,we should fully grasp the information of the target company and improve the evaluation system and methods.Secondly,actively broaden the financing channels and grasp the appropriate time of payment.Thirdly,determine the effective integration model and improve the management mechanism.Through the analysis and verification of this thesis,the impact of cross-border M&A on the financial situation of enterprises is persistent.Nanjing Xinbai M&A HoF was completed in 2014,which had a positive effect on the company in the first two years.However,HoF went bankrupt in 2018,which brought a huge blow to Nanjing Xinbai.Therefore,only analyzing the financial situation of one or two years after the completion of M&A can't reflect the actual impact of M&A,and doesn't have enough reference.The research results of this thesis can provide experience and reference for listed companies to carry out cross-border M&A,help to avoid the financial risks of mergers and acquisitions,and improve the success rate of mergers and acquisitions.