Chinese And Western M & A Comparative Study

In recent years,M&A become an important phenomenon in our economic life．West countries have undergone five M&A movements broad in size．M&A have changed the economy of these countries and already developed into an efficient resource disposition mechanism,which can improve industrial structure and realize liquidity of resource．M&A have not appeared in China until recent years and the results of M&A disappoint us．Then come two basic questions :What answers for the difference between M&A of China and west countries?and how can we improve our M&A to make it really play important role in resource disposition?Based on above-mentioned consideration,this essay aims at analyzing and settling the two questions．The essay develops its argument on the thinking of ＂presenting problem－analyzing problem－settling problem＂．It consists of five parts．Part One General Introduction of M&AFirstly,this part explains the concept,implication and character by nature of M&A．Secondly,the author compares and analyzes the historical evolution of M&A in China and in west countries ．At the end of this part,four conclusions have been reached :1.modern property right system and modern capital market are the basis of M&A；2.M&A not only are affected by industry structure but also advance the evolution of industry structure．３.M&A become more and more international 4.government affects M&A by drawing up policies and regulations Part Two Generation Basis Analysis of M&A This part intensively analyzes the two basis of M&A ——modern property right system and modern capital market .Property right system determines the nature of M&A．Due to the indistinct property right inChina,the M&A in China have not caused the change of property right owners．So M&A in China should be properly called ＂quasi－M&A＂．Capital market determines the extent of M&A development．A developed capital market can provide enterprises with ways of raising money which M&A require and the medium institutions in capital market help to save expenditure and reduce risk of failure．But,the capital market in China is underdeveloped,it hinders M&A in four ways:1.the capacity of capital market is not large enough for enterprises to issue junk bonds which leverage buy out requires．2.proportion of negotiable stock is too big which hinders acquisition of the share of listed company．3.such forms of M&A as takeover,acquisition haven't appeared in China until capital market is developed．4.the developmental lag of medium institutions such as investment bank increases cost and risk of M&A． Part Three Motive Analysis of M&AFirstly this part introduces six kinds of western motive theories and then compares them with motive theories in China．Compared with western theories,motive theories in China have some specific characteristics．In spite of all kinds of concrete motives,it is the motive of pursuing economic benefit of their own that mobilizes enterprises in west countries to operate M&A．While M&A are introduced into China as a key to settle the lack of profitability in state-owned enterprises．In order to find a way out of adverse circumstance,government precipitates some M&A by mandatory order．But with the development of market economy,like west enterprises,some advantageous enterprises begin to operate M&A with the motive of improving profitability,raising market power and realizing low-cost expansion etc.．So motive of M&A in China has dual nature．There are both economic and non-economic motives in China．The author holds the opinion that motive is the inflection of property right system．West country establishes clear property right system,andgovernment can't interfere in business of enterprise but carries out macroeconomic control．So west enterprise can pursue economic benefit in M&A．While in China,property right is unclear and government function hasn't been separated from business management,some enterprises operate M&A in order to complete political task．Part Four Effect Analysis of M&AWe...