Study On The Cross-border M&A Of Chinese Enterprises: Motivation And Market Effect

Under the circumstance of integration of economy in a range of the entire world, cross-border M&A is a necessary option for multi-national enterprises. Furthermore, it is the most distinguished character of current international transportation of capital. The cross-border M&A accelerate the process of globalization, and stimulate the thoroughly adjustment of countries around the world.Entering the 21st century, Chinese enterprises have been commencing their investment abroad by means of cross-border M&A. Some successful cases, such as Lenovo’s acquisition of IBM’s department of PC business, have drawn a world-wide attention. However, according to the short history, Chinese enterprises haven’t posses an comprehensive experience in cross-border M&A. Therefore, it is necessary for both Chinese academic and. practice sectors to study the issues arisen with the increasing number of cross-border M&A cases initialed by Chinese enterprise.In this paper, the cross-border M&A of the Chinese-funded enterprises are analyzed in detail in contrast to those of US-funded enterprises, including deal type, deal value, date completed, acquirer Zephus classification, target Zephus classification, target zone, target multiples and other aspects. By the event analysis, the market reactions for the Chinese listed companies are calculated, followed by a robustness test. Finally, according to the calculation results mentioned above, the strategies of Chinese enterprises overseas capital operation are analyzed. Main conclusion is that Chinese enterprises need to be cautious of overseas capital operations, and can not be blindly carry out overseas capital operations.