A Research On Cost Benefit Analysis In Transnational Merger Of China’s Enterprises

With the global economic’s development, most enterprises have been concerned oncorporate mergers and acquisitions which is the most important and effective means forexpanding market share and optimize capital institution. As a part of the merger andacquisition,Cross-border M&A is the inevitable result of the development of merger andacquisition in our country. At the same time,it is also an effective way of capital operation thatcan make the enterprise rapidly expand the scale of production and sales, to achieve globalresource to optimize configuration, educe the import and overseas market cost.AlthoughCross-border mergers and acquisitions can make enterprise scale to expand rapidly, it is acomplex process and system. In a certain sense, the success or not has the very big relations tothe price of Cross-border M&A. Therefore, how to get the reasonable prediction of M&Aneeded money and how to get the funds effectively that Cross-border M&A needed is anvery important point that the enterprises concerned.In this paper, based on the cost benefit theory and capital structure theory, the author use themethods of theoretical analysis and empirical analysis to analysis China’s Cross-border M&A enterprises’ financing options and cost benefit analysis.Though this research, theconclusion of the Chinese enterprises in transnational merger and acquisition in the choice offinancing means more tend to own capital or has shares to enterprises on the equity financinghas certain preference is got. What’s more, this article finds that there are many problems inour enterprises’ merger and acquisitions,such as financing channel is narrow,the high cost offinancing, financing risk, financing quantity limited etc.Finally, through to analysis thefinancing means in our country enterprises’ merger and acquisition trying to seek a kind ofcost benefit way which is adapt to China’s Cross-border M&A enterprises...