Research On Efficiency Improvement Of Chinese Enterprises' Cross-border Mergers And Acquisitions

In recent years, to adapt to the economic globalization, Chinese enterprises participate in the Cross-border Mergers and Acquisitions positively, and the scale and quantity of which has been expanding incrementally. Especially under the global financial crisis background, M & A abroad has been intense, and a wave of the M & A abroad appeared from the peak to valley. Which mainly because many countries reduced the threshold for absorbing foreign capital, and the limitation on foreign funds has been loosen up, however, our enterprise possessed fund advantage for suffering less relatively. The efficiency of our enterprise's M & A abroad is inefficient before, most of the enterprises failed. To promote the efficiency of Cross-border M & A, we should study deeply the factors of which, combined with the problems of practical activities, and put forward improvement ideas. However, currently, most study on influencing factors of efficiency in Cross-border M & A are failed in guidance, for they mainly concentrate on the surface, not the key factors. In essence, cross-border M & A is the process of transnational flow and restructuring of enterprise's property rights, so the efficiency of that should become the combined results of transactions efficiency of property and management efficiency. Therefore, with empirical model, From the perspective of enterprise's property rights, this paper analyses the factors for the efficiency of cross-border M & A with empirical model, taking ownership and control as breakthrough point and making the cost - benefit as the main line.This paper studies the issues how to improve efficiency of our cross-border M & A. The first part is about the summary of theory of M & A, including three sides: meaning and types, motivation theory and efficiency theory of efficiency.At present, cross-border present major characteristics as follows: Subject of mergers and acquisitions mainly rely on large state-owned enterprises; Industry of mergers and acquisitions concentrate in the primary sector and manufacturing, less services involved; Areas of mergers and acquisitions areas transfer to developed countries, mainly in Asia, followed by Europe and America. Generally, the number and scale of Chinese overseas acquisitions increased, and the trend of diversification in M & A become clear. But there are also many problems: limitations of making state-owned enterprises as major subject of M & A, unreasonable investment structure and strategic target selection, the lack of advantages at specific ownership, Poor effectiveness of cross-border M & A and defective service system supporting cross-border M & A and so on.To solve above problems and enhance the efficiency of Chinese enterprise's cross-border M & A, firstly, this paper made an empirical analysis for long-term performance of China's business in cross-border mergers and acquisitions. Generally, no significant improvement appeared in the sample company's comprehensive performance of overseas M & A in 2006 and 2007, compared with that in the previous M & A. Although a slight increase appeared in M & A year, but began to decline after a year. However, most difference with other empirical findings, in the second year after acquisition and firm, the performance did not continue to decline, it has made significant recovery, but finally only close to the level of M & A year, increased slightly than that of prior to M & A year. After analysis for factors of performance in M & A using multiple regression, we find that the share ownership gained by acquiring enterprise is positively related to overall performance. Cross-border M & A is a complex process, its result would be the combined effects of various factors, some f them can not make quantitative analysis, such as politics, economic environment, corporate culture, management and other. To explore the factors for the efficiency of China's Overseas M & A effects as comprehensively as possible, this paper made qualitative analysis of above factors.Secondly, this paper analyzed the efficiency of cross-border M & A using property rights theory, which is also the innovation and difficulty of this paper. Combined with functions of property rights and operation of cross-border M & A, this part described the path and Mechanism about the influence of enterprises'property rights on performance of M & A from two aspects: Ownership advantages is the primary factor in the efficiency on cross-border mergers and acquisitions, which embodied mainly in the choice of target; Control are key factors for the efficiency of the cross-border M & A, from efficiency of performance and governance the two levels to be explained.Finally, to enhance the efficiency of enterprises'cross-border M & A, this paper gave some suggestions supported by relevant case. These suggestions include seven areas: diversified subjects of M & A; enhancing the overall strength of enterprises; target selection of M & A based on ownership advantages; making scientific and systematic strategy of M & A; holding reasonable and actual control rights of master; improving the efficiency and Broaden the financing channels for integration. At the same time, this paper selected two typical cases from the merger events. to study.