Research On Chinese Companies Cross-border M&A Performance

With the acceleration of global economic integration, cross-border mergers and acquisitions has led to a global M & A wave, had a major impact to the world economy. Compared to developed countries, Mergers and Acquisitions of Chinese enterprises had a late start. Entering the 21st century, Chinese enterprises began to Show enthusiasm for cross-border Merger and Acquisitions and set off a new wave of cross-border Merger and Acquisitions in 2009.Geely Automobile conducted a 1.8-billion acquisition of Volvo, known as "the largest Merger and Acquisition of Chinese enterprises in 2009."Recent Years are the ten years of cross-border Merger and Acquisitions of Chinese enterprises rapid development, but what is the current situation? Meanwhile, from a global Point of view, despite the wave of Merger and Acquisitions around the world, less than one third succeeded. What is the Performance behind the transactions?This thesis aims to answer these questions:" what are the characteristics of these Merger and Acquisitions?"What are the differences before and after the transactions? And" Is there a correlation between different characteristics and Performance?".The thesis Provides information and guide for Chinese enterprises transactions through the study of their characteristics and Performance during the recent 10 years.Based on the research results at home and abroad, this thesis uses empirical analysis and summarizes the characteristics of cross-border Merger and Acquisition conducted by Chinese enterprises. The thesis establishes a comprehensive evaluation framework on the analysis of the enterprise's profit capability, solvency, operating capability, ability of net cash flow and growing capability, to evaluate the Financial Performance of Merger and Acquisitions. Empirical approaches, such as Factor analysis and Paired test are used to analyze the financial Performance of these Merger and Acquisitions. The thesis then classifies and researches on the Performance with different characteristics, and tests the correlation between different characteristics and Performance using regression models. The analysis indicates that:The overall Performance of Chinese enterprises through Merger and Acquisitions first Rises and then drops, then rises and changes significantly. Among them, there is a negative correlation between Performance and locations, a significant Positive correlation Between Performance and locations, and significant negative correlation between Performance and methods of Payment. Finally, the article summarizes the conclusions of empirical research, and work closely with the macroeconomic situation for the government and enterprises offer some suggestions. This study pointed out the deficiencies and the prospect of future research directions in the end.