Research On Cross-border Mergers And Acquisitions Risk To China’s Commercial Bank

With globalization and liberalization of the world economy, more and morecross-border mergers and acquisitions of commercial banks have joined the"wave". However, cross-border mergers and acquisitions in the banking not onlybrings development and opportunities, but also hides a huge risk. Studies haveshown that only a small number of transnational mergers and acquisitions havebeen successful, but most of the cross-border mergers and acquisitions havefailed. Therefore, cross-border mergers and acquisitions risk identification,measurement and prevention for bank policy makers are particularly important.Based on this, combined with the theory of cross-border mergers and acquisitionsrisks, identification, measurement and prevention of cross-border mergers andacquisitions risk were analyzed in system, hoping to provide a valuable referencefor the bank of managers and decision makers.Firstly, the performance of the relevant literature, the relevant domestic andcross-border bank mergers and acquisitions motivation, mergers and acquisitionsrisks and preventive measures, were studied to understand the current situation ofcross-border mergers and acquisitions in the domestic and abroad banking. Thenthe relevant meanings, motives and risks for cross-border mergers andacquisitions are conducted a comprehensive analysis, and more systematicelaborates the theoretical basis of cross-border bank merger and acquisition risks.On this basis, from the qualitative analysis perspective, the main risks ofcross-border mergers and acquisitions of commercial banks are identified andstudied in this paper. And from the perspective of quantitative analysis, theapplication of fuzzy evaluation method for the risk of cross-border mergers andacquisitions is to measure risk. In addition, for the three stages of cross-border mergers and acquisitions in China’s commercial banks, a more comprehensivesummary of the different stages of risk prevention measures is to be taken.Combination of the above analysis, as a merger case which China’s ICBCmergers Thailand’s ACL Bank at the end of the paper, the study of the theory andpractice is combined together in order to achieve the purpose which theoryguides practice. While the analysis of merger cases, it helps China’s commercialbanks identify and prevent the actual cross-border mergers and acquisitions risk,and improve cross-border mergers and acquisitions performance of China’scommercial banks, and promote their development.