Research On China’s Cross-regional M&A Market Attraction Index

M&A is an important way of resource flows, cross-regional M&A will cause the flow of resources between different areas, and the optimal allocation of resources between various regions. At present, the market of cross-regional M&A is active, but because of the difference between the development of areas’ economic and the uneven distribution of resource, the target of regional distribution is not balanced.By studying cross-regional M & A activity, this paper constructs regional M & A market attractiveness index system based on two angles which includes regional economic geographic features and natural geographic features. The index system includes economic environment, policy environment, resources and environment, social & cultural environment, infrastructure environment. This paper used factor analysis to calculate the M & A market attractiveness index of 31 provincial-level administrative units between 2008 and 2013 in China, analyzed the regional M & A market environment, compare the advantages and disadvantages of regional cross-regional M&A attraction. By means of analyzing a case study of Beijing,this paper verified the correlation between the M & A market attractiveness index and cross-regional mergers and acquisitions activity.The study found that the provinces M & A market attractiveness index and cross-regional mergers and acquisitions activity level showed a significant positive correlation.M & A market attraction presents "East Strong-Weak-Western weaker" distribution pattern.But provinces M & A market environment has improved between 2008 and 2013.Meanwhile, the economic environment, the consumer market level, natural resource elements, the level of infrastructure are important factors affecting the attractiveness of the M & A market.Therefore, in order to attract cross-regional mergers and acquisitions activity, improve the overall level of the regional industrial structure, the region should make use of local natural resources, improve the infrastructure environment, optimiz policies and systems environment, expand the capacity of the consumer market.