Research About The Financial Control Of Overseas Mergers And Acquisitions Of Chinese Enterprises

Since the21th century,with the development of global integration and theenhancement of Chinese enterprises’ comprehensive strength, more and more Chineseenterprises became to realize the importance of the overseas M&A activities. Especiallywith the occurrence of2008financial crisis, the overseas M&A of our enterprises developfaster. M&A could strengthen the enterprises to optimize allocation of resources around theglobal scope and improve products efficiency, so that to improve competitiveness and theability of defense the risks.Because of the overseas M&A usually happen in two or more different countries, Thedifferences of the political, cultural, operational, consumption environment sometimesmake the situation of asymmetric information. Therefore compared with other form ofM&A, the overseas M&A faces the more risk factors. That’s includes the political risk,operational risk, cultural risk, financial risk, and the financial risk is one of the mostimportant factor to influent the transaction of the enterprises, the others factors will finallyreflect on the financial risk.This paper according to the technological process of the overseas M&A, divided itinto three stages, preparing stage, implementing stage and integrating stage. Consideringthe influent factors of the pricing risk, financing risk, payment risk and integrating riskduring the process of the overseas M&A, put forward some effective solutions to controlthe risk. The method of empirical study is choosing30manufacturing enterprises whichoccurred M&A in2011through using Z-score to assess the whole financial risk of them, toimprove the overseas M&A increase the financial risk of the enterprises. So the financialcontrol is necessary and this method can be used by the enterprise to evaluate themselves’financial risk.Since the financial crisis of2008, the international economic situation has changed alot. Because of the difference of operational and financial environment, the overseas M&Aof our enterprises could face lots of new risks. The innovation point of this paper isthrough the analysis of economic situation and financial environment, according to the new trend of the overseas M&A, and point out the possible financial risks, take the measures tocontrol them.