The Study Of The Government's Behavior In M & A In China

Over the last 20 years, enterprises' merger & acquisition tides in China are vigorous day by day and attract people's attention. Accordingly, researches on theories of M & A become hot topic. Unlike abroad, under institutional transition in china,an important feature is that the government directly intervenes in M & A as the owners of state assets and the managers of socio-economic status, which led to a series of problems. Therefore, the study of the government's behavior in M & A in China have actual and theoretical significance. While some scholars make researches on government's behavior in M & A under institutional transition in China.However, the study of comprehensive system from the motion, behavior and performance is not yet many. We attempt to pursue this line of thought to conducting government's behavior in M & A on the base of the objective analysis and evaluation. This paper asserts that it is necessary that the government intervent in M & A under the double constraints of shortages of merger system and market system. However, excessive government intervention has resulted in many negative effects of M & A, therefore, the government should reduce the intervention to M & A.First, the paper use standardized methods mainly from the perspective of market failure and government failure to analyse the need and shortcomings for government intervene to M & A and we proposed conjoin is the best option for government and market organically. Second, because China s government intervention merger with multiple causes, and therefore this paper use normal and empirical analysis of this method to discuss the motion of China's government to intervene M & A from the system of property rights basis, the elimination of state-owned enterprises "internal control" five aspects. Next, the paper analyse the governmental behaviors in M & A. we think the goal of governmental behavior is diversified and in the pattern of interest s subject disintegration, the central governmental behavior is more comprehenisive and social, and local governmental conduct more inclined towards local interests. Thus, local government more positively use administrative means to intervent in M & A. Finally, we conclude the characteristic of China's government to intervene M & A, including two aspects: Firstly, assert owners and managers of social functions are confused. Secondly, the market acts and adminstrative acts areconfused.On performance of government to intervent M & A, through standardize and empirical analysis we think the government played a positive effect which was manifested mainly in administrative coordination, policy-oriented industries, intermediate alternative, and government security. However, the negative effects primarily include three aspects: First, M & A under the the rent-seeking behaviour patterns often result in social resources and social welfare losses. Second, the unpaid way of property transfers concerned, performance of the company can not be made large degree of imporement from a long term. Third, the governmental intervention M & A and unscientific decision-making led to unefficiency.Based on the above analysis, we discuss how to make the government behaviors become normative in M & A and how to explore reasonably governmental role. Wethink government should as guide, coordinate, intermediary and service provider role. This requires This requires that the government conduct a series of system changes and innovation. Meanwhile, we emphasize the ultimate goal of M&A's model must be taken the market approach. And in the same time, the government should play a reasonable role under which achieve organic combination for government and market in M & A which is the best way to achieve optimal allocation of resources.