| China since its opening up has made great achievement internationally,the Chinese economy development has increased significantly,Chinese people’s life has greatly improved and changed.In the first period of opening up,EHS cost and human capital cost were relatively low which attract foreign investors a lot,however along with the increase of living standard of Chinese people the percentage of cost of foreign investment that EHS and human capital is taking has largely increased.Therefore,in this situation of alteration of investment environment,analyzing in deepness the influence of human capital and EHS to M&A of Chinese enterprises by foreign big cross border enterprises becomes very meaningful.Through current researches on EHS and human capital cost and investigations on foreign investment companies,it helps to discover that local policies and human resource supply to foreign investment companies are important elements which influence the activity of M&A.This paper is using interdisciplinary analysis and other methods to form the following conclusions.(1)EHS policy can guarantee the safety of workers after M&A.Through investigations,it is discovered that some foreign investment companies violate Chinese EHS policies which affect the labor capital relationship and therefore affect the enterprise’s operations.China still face challenges in the standardization of working environment and health protections of workers,occupational disease is increasing rapidly year by years.On one hand EHS policy protect the basic rights of workers,on the other hand,if the cost of EHS standardization is high,it will add operation pressure to the enterprise which lead o failure of M&A.Therefore,to thoroughly understand the operation environment of foreign investment companies,to design practicable EHS policy will promote efficiently labor capital relationship and bring more foreign investors in China.(2)The cost of human capital is an important factor in the enterprise operations.The culture difference is one of the main reasons of M&A failure;too many foreign companies focus too much on short terms profit and neglect the importance of long term plan.Human capital management has a strong meaning for cross border companies’ management,the possession of highly competitive human capital make the company more competitive,most of failures of M&A can be explained by the inappropriate management of human capital.In the process of operation,foreign company lacks of assessment method to examine employees.China in recent years is losing demographic bonus,therefore to achieve cross culture management is an important method for the growing of foreign enterprises.(3)The thesis is using the case of Zhejiang Zr-Valley to analyze the cost of M&A.As a chemical enterprise,Zhejiang Zr-Valley has high requirements for EHS management.The study on EHS management of the enterprise will be of exemplary significance to other foreign-funded M & A enterprises.Zhejiang Zr-Valley is one of the best manufacturers of zirconia in China.Owing to the downturn of global economy since 2012,the market need of zirconia has decreased.After being acquired by Imerys Group,through setting strategic goals,better doing related work of human capital and EHS,and retaining the proactivity of employees,Zhejiang Zr-valley regain prosperity.(4)Through analysis on human capital,EHS theories and case studies,advices and lutions are concluded including Chinese investment environment,foreign M&A human capital cost management as well as the increase of international competitiveness of foreign mergers.China,in the background of constant mounting EHS cost and human cost is very attractive to foreign investments which provide further references for strengthening Chinese reform. |
