An Empirical Study On Financial Risks Of Overseas M&A Of Chinese Enterprises

With the gradual development of Chinese enterprises to the world,the overseas M&A activities of Chinese enterprises are becoming more and more popular.With the promotion of the policy of "one belt and one road",more and more Chinese enterprises have gradually shifted their attention to "one belt and one road" along the line,and overseas mergers and acquisitions have increasingly become a means for enterprises to seek their own development.More and more private enterprises and small and medium-sized enterprises have joined the wave of overseas M&A.However,overseas mergers and acquisitions of Chinese enterprises are not smooth sailing.The lack of experience in overseas mergers and acquisitions of Chinese enterprises and the difficulty of overseas mergers and acquisitions itself have led to many difficulties for Chinese enterprises on the way of overseas mergers and acquisitions.Especially for small and medium-sized enterprises,their own capital is not enough,and they can not rationally analyze the actual situation,so that they can merge and acquire for overseas mergers and acquisitions and increase the financial burden of enterprises.Affect the normal operation of their own enterprises.There are many risks in overseas M&A.Among them,financial risks run through the whole process of overseas M&A.Compared with other risks(such as political risk,cultural risk,etc.),financial risks can be analyzed and predicted because of the support of financial data.Therefore,this paper takes the financial risk of overseas M&A of Chinese enterprises as the research content.Firstly,based on the theory of financial management,this paper gives a theoretical overview of the related concepts involved in this paper,and summarizes four aspects of financial risk in overseas M&A.Then,it summarizes the current situation of financial risk faced by Chinese enterprises in overseas M&A and the existing problems of Chinese enterprises in dealing with financial risk in overseas M&A.Then,it takes Z-value financial risk model as the paper.Five explanatory variables are selected as the basis of Z-value model.The financial data of 24 listed companies participating in overseas M&A are collected.The Z-value model is used to measure the financial risks before and after M&A.The results of Z-value are analyzed by SPSS and DPS statistical analysis software.The analysis shows that the financial risk of Chinese enterprises generally increases after participating in overseas M&A events,and the payment risk has the highest impact on the overall financial risk in the early stage of overseas M&A,while the integration risk has the highest impact on the overall financial risk in the later stage of overseas M&A.Therefore,this paper concludes that enterprises should pay more attention to payment risk and integration risk.According to the results of empirical analysis,this paper finally puts forward the following three suggestions:(1)enterprises should strengthen the intensity of financial due diligence investigation,and financial due diligence should be targeted and focused;(2)enterprises should enrich payment methods and optimize the combination of various payment methods;(3)enterprises should pay more attention to the integration of financial risks in the later stage of overseas.mergers and acquisitions,and formulate integrated financial strategic items.Standard to make adjustments to financial integration at any time.