Research On The Differences In Motivations Of Overseas M&a In China's Manufacturing Industry

Verseas merger and acquisition is one of the main forms of foreign investment by enterprises of all countries.At present,the sixth wave of global overseas merger and acquisition is being staged.At the same time,under the background of "One Belt And One Road" initiative and "made in China 2025" strategic goal,the government is strongly supporting Chinese enterprises to "go global".For Chinese enterprises,this is a time of both opportunities and challenges.At present,Chinese scholars have done a lot of research on overseas mergers and acquisitions,but relatively few on the overseas mergers and acquisitions of the manufacturing industry of a single industry.However,during the period from 1990 to2017,the number of overseas mergers and acquisitions in China's manufacturing industry has reached 1,160,accounting for 38% of the total number of Chinese overseas mergers and acquisitions and playing an important role in foreign trade.Based on the hypothesis of consumers' heterogeneity preference,this paper analyzes the determinants of the investment behaviors of manufacturing enterprises' overseas mergers and acquisitions from the perspective of enterprises' investment motivation by constructing the profit function of manufacturing enterprises' overseas mergers and acquisitions.Through the test of empirical research,this paper explores which motivation Chinese manufacturing enterprises prefer in overseas m&a.This paper selects the host country as the member of G20 summit from 2000 to 2016,and the overseas m&a events of Chinese manufacturing enterprises as the sample.The sample countries are 29 countries,including 18 developed countries and 11 developing countries.To examine the influence of market,technology,resources,cost and other factors on the overseas m&a of China's manufacturing industry.The samples were divided into manufacturing industry segments and host country locations for group discussion to analyze the changes of Chinese manufacturing enterprises' motivations for overseas m&a in G20 countries under different conditions.It is found in this paper that the overseas m&a of China's manufacturing industry is significantly affected by market-seeking motivations and technology-acquiring motivations on the whole.The larger the market size of the host country and the higher the level of technological innovation,the more attractive it will be for Chinese manufacturing enterprises to conduct overseas m&a in this country.Secondly,there is a significant positive correlation between the economic freedom and infrastructurelevel of the host country and the overseas m&a transaction volume of China's manufacturing industry,and the exchange rate has a significant negative impact on the overseas m&a of China's manufacturing industry.In addition,the samples were grouped according to the m&a industry and investment location,and the motivations of Chinese manufacturing enterprises for overseas m&a of G20 countries were empirically tested,and it was found that the motivations of Chinese manufacturing enterprises for overseas m&a were different under different circumstances.Therefore,in the context of the "One Belt And One Road" initiative and the "made in China 2025" strategic goal,Chinese manufacturing enterprises should seize the opportunity to actively go out for overseas mergers and acquisitions,and at the same time choose carefully and make scientific decisions.Enterprises should reasonably choose the m&a industry to avoid the duplication of investment in the industry,and strengthen the risk assessment before the m&a investment;In the selection of overseas m&a,we should first consider the market factors of the host country and make clear the investment motivation to make an appropriate choice for the company planning.Government will play an active guiding role,and guide balance of locational distribution of overseas mergers and acquisitions,focus on development advanced technology area of mergers and acquisitions,and actively develop a large market area of m&a,promote the acquisition of resource-rich region,as well as perfecting the laws and regulations,establish a system of supervision system,ensure the smooth operation of the Chinese manufacturing enterprises overseas mergers and acquisitions.