A Study On The Performance Of Cross-border M & A Of Chinese Private Enterprises

With the deepening of the global economic integration,more and more Chinese enterprises began to go abroad.According to China’s Foreign Investment Statistics Bulletin shows that in 2014 China’s foreign investment amounted to $123 billion 140 million,compared to $2 billion 900 million in 2000,an increase of nearly 42 times.And cross-border mergers and acquisitions as an important way of foreign investment,amounted to 56 billion 900 million US dollars in 2014,accounting for almost half of the foreign investment.At the same time private foreign investment by 2006 accounted for19% of total foreign investment growth of 46.4% in 2014,growth is very alarming.Then,whether the private enterprises can improve the performance of the enterprises,and which are the factors that affect the performance.with the development of private enterprises these problems has attracted more and more attention of scholars both at home and abroad.Therefore,this paper analyzes the impact of cross-border mergers and acquisitions on the performance of private enterprises,and finds out the factors that affect the performance of private enterprises in order to provide theoretical guidance for private enterprises.In this paper,we used 40 private enterprises as a sample and 50 state-owned enterprises as the control group,Through event study method,we have studied on the performance of private enterprises’ cross border mergers and acquisitions.The study found that the mergers and acquisitions of private enterprises have created wealth for shareholders,and private enterprise merger performance was significantly better than the state-owned enterprises,at same time we found that the horizontal merger performance is better than vertical and mixed mergers and acquisitions.In order to study the influence factors of the private enterprises’ m & a performance,this paper uses the Probit model.Different from other literature,this paper focuses on the analysis of cross-border mergers and acquisitions of private enterprises.Make up for the other documents in the analysis of performance issues of state-owned enterprises and private enterprises do not make distinction,The research on the performance of private enterprises has made the relevant supplement.When studying the performance of private enterprises,this paper will take legal system investment protection agreement into the model which was not considered by other papersThe first part of this paper make a brief introduction of the background、research methods and the theoretical and practical significance.The second part gives the specific concept of cross-border mergers and acquisitions,and then a detailed analysis of the history of the development of the global cross-border mergers and acquisitions.In the end,we reviewed the literatures about the cross-border mergers and acquisitions.The third part reviews the historical development of China’s M & A,and analyzes the current situation and characteristics of cross border mergers and acquisitions.The research emphasis of this paper is fourth,fifth parts,the fourth part firstly introduces the accounting index method and the event study method.Then use the event study method to compare the performance of private enterprises and state-owned enterprises cross-border mergers and acquisitions.with the study in the fourth part,we used PROBIT model to study the factors which influence private enterprises transnational merger performance.at the end of this paper,we give some advices to the goverment which is based on our study.