Study On Cause And Effect Of Merge And Acquisition Of Foreign Capital In China

Since the 20th Centrury 80th decade, the key character of global economic development is production and capital flow take on obvious internationalization trend. With advancement of technology and deepening of international divide, mutinational merge and acquisition(M&A) appear new change. Sjnce the 90th decade, M&A of foreign capital in China have become an important character of foreign investment in China.This paper will introduce M&A theory from three angles in the following: Firstly, from western primary M&A theory angle; secondly, from company economics angle; thirdly, from a kind of new expositive point, that is business expense theory angle.These theory virtually explain inherent cause of M&A. Combining the above theory, the cause of speculative type, economical type and strategic type will be explained at large in this paper.M&A of foreign capital in China is influenced by inherent cause.Meanwhile, we also pay attention to influence of exterior cause. This paper will expound concretely how technology advancement and corporation size, industry structure and economic cycle, market structure and competitive intension impel M&A of foreign capital in China.Large scale M&A of foreign capital in China will bring obviously macrosopical effect. Taking one with another, these effect mostly include resource collocating effect, technology advancement effect, wealth effect and investment demand effect. These effects will be analysed in detail by model and correlative data.For exert positive effect and avoid negative effect/This paper bring forward several suggestions to settle this problem. Certainly, restricted by present ability, The views of the writer must exist some oversights. Any comment would be appreciated.