Research On The Motivation And Financial Risk Of Internet Enterprises' Overseas M&A

The development of China's Internet industry started in the 1980 s,later than foreign countries.The core competitiveness of the Internet industry comes from talents and technologies.Overseas M&A is one of the important channels for Chinese Internet enterprises to acquire talents and advanced technologies.However,few enterprises can successfully complete overseas mergers and acquisitions,and the reasons for their failure are inseparable from the financial risks in the process of mergers and acquisitions.Therefore,this paper selects representative cases of overseas mergers and acquisitions of Internet enterprises to analyze,and studies the causes and control problems of overseas mergers and acquisitions of Chinese Internet enterprises.Nearly 20 years of the Internet industry in overseas M&A boom caused the attention of scholars,based on the domestic and foreign scholars on overseas mergers and acquisitions motivation and M&A financial risk causes and control aspects of the research as the theoretical basis of this article research,to overseas M&A motivation as a starting point,found that the existing research on the Internet enterprise overseas M&A financial risk causes and the lack of control,reflect the research value of this article.In this paper,literature analysis method is adopted to analyze and summarize the motivation and financial risk related theories of enterprises' overseas mergers and acquisitions,and to construct the financial risk control framework of " M&A motivation-risk causes-risk assessment-risk control".On this basis,financial risk related research is conducted.In this paper,the single case analysis method is adopted to analyze the causes of the overseas mergers and acquisitions of Chinese Internet enterprises and the causes of their financial risks.First,the financial statement analysis method and the z-value model comprehensive analysis method are adopted to evaluate the financial risks of the cases of mergers and acquisitions.It is found that overseas mergers and acquisitions increase the financial risks of enterprises.The second is the analysis of Tencent in overseas mergers and acquisitions in the use of diversification to reduce financial risk strategy.On the basis of the research on the motivation and financial risk prevention of representative cases of overseas mergers and acquisitions,this paper draws the research enlightenment that can be used for reference by Chinese Internet enterprises to reduce the financial risk of overseas mergers and acquisitions,accelerate the "going out" of Chinese Internet enterprises,and achieve better development.