Changing Role In Transnational Merger And Acquisition Of Chinese Enterprises: A Study From The Perspective Of Transaction Costs

Transformation is an important task after the financial crisis for economicdevelopment of the country, is a foundation of accelerating the transformation ofeconomic development pattern in China, improving industrial competitiveness,narrowing the urban-rural income gap. Cross-border mergers and acquisitions as anew business organization, closely related to the economic growth and transformation,is the effective ways for enterprise to cross from its previous "introduce" to "go out".In recent years, cross-border mergers and acquisitions became the main forms of FDI,and is the main force of the foreign enterprises’ participation in economicglobalization. China since its reform and opening up, especially since the fastdevelopment of the economy after its accession to the World Trade Organization, relylarge part on exports. Whatever, transnational corporations are the bridge for exports.At present, China’s strategic industries are facing the top high-end industry,engaged in low-end manufacturing and processing difficulties. In order for thedevelopment of strategic industries truly high-end, we can through cross-bordermergers and acquisitions, use the comparative advantage of its huge market and lowtransaction costs to complete the reverse takeover in developed countries, access toelements of high-end production in developed countries, especially in technologyand human capital.China, the world’s most promising developing country, it has completelydifferent characteristics in many Western countries, these traits on the enterprisesystem of transnational mergers and acquisitions have both institutional advantagesdisadvantages. China’s socialist market economy system, make it easier for theGovernment to form and nurture large enterprises, merger and acquisition in the caseof ownership advantage not entirely and not obvious. Facing a complex internationalmergers and acquisitions environment, to speed up the construction of the ChineseGovernment to improve national performance, provide indispensable support fortransnational merger and acquisition of enterprises. Whatever, enterprises shouldquickly upgrade capacity,"learning by doing", and pursuant to its own advantage,seize the opportunity, meet the challenge, become a world-class internationalcompany.In the critical period of China’s economic transformation and upgrading, transnational mergers and acquisitions can effectively promote the upgrading ofindustries, achieved through the introduction of foreign advanced technology andhigh-end talent to rising international high end of the value chain. This article is basedon the urgent need for transformation and upgrading of the status of the domesticeconomy, from the perspective of industrial organization, study the need fortransformation and upgrading of China’s transnational enterprises, overseas mergersand acquisitions. First of all, to simply review the related theory of transnationalmergers and acquisitions, clear different focus of theoretical analysis and transnationalmerger and acquisition in history and analysis of the present situation, determine thedirection the research for this article; second, the transaction cost theory of the newinstitutional economics, trying to reconstruct classic Carson model, this model ofmodern enterprise theory on the basis of relevant conditions, applying this model tothis popular enterprise-organizational forms for transnational mergers and acquisitionsanalysis, attempting to explain the feasibility of reverse cross-border mergers andacquisitions in developing countries; Third, through the representation ofmultinational enterprises in China: an empirical analysis, found that Chineseenterprises can take advantage of its huge market and trade for developed the reversetakeover of the enterprise, reducing transaction costs, facilitating the process ofindustrial transformation and upgrading. Finally, this article provide a number ofspecific policy recommendations for Chinese enterprises to get realization of "goingout" ambitious goals from a perspective of Interdisciplinary research and schemedesign of transnational acquisition.