Research On The Financial Risks And Countermeasures Of China's Listed Companies' Cross-border Mergers And Acquisitions

In recent years,with the rapid development of economic globalization and the increase in China's economic strength,Chinese companies' aspirations and capabilities to enter the international market have become stronger.Cross-border mergers and acquisitions have become an important way for Chinese companies to enter overseas markets and expand their scale.However,most companies currently lack experience in overseas M&A,and the success rate of mergers and acquisitions is relatively low.Even if they succeed in M&A,there are still many integration risks afterwards,such as risks of financial integration and cultural integration.These problems make it difficult to achieve the effect of 1+1>2 and thus lead to the decrease in M&A activities.The financial activities of a company run through the entire M&A process,and along with the business activities of the company,it has become a key factor to the success of the M&A activity.Once the financial difficulties occur in one of the M&A and operations,it will cause operational difficulties and business risks.Therefore,financial risks become the top priority for companies to deal with confronted with various risks in mergers and acquisitions,and have important impact on the success rate of mergers and acquisitions.This article mainly studies the cross-border mergers and acquisitions financial risks of Chinese companies based on the relevant domestic and foreign literature,and analyzes the related theories of cross-border mergers and acquisitions,focusing on the causes of the financial risks of Chinese companies' cross-border mergers and acquisitions,and in combination with CNOOC's acquisition of Nexen's case.The successful experience puts forward the relevant recommendations that Chinese companies should fully recognize the financial risks when cross-border mergers and acquisitions,and take corresponding measures to effectively prevent and respond.