Research On Financial Risk Control Of Chinese Enterprises’ Cross-border Mergers And Acquisitions From The Perspective Of One Belt One Road

The steady development of China’s macro-economy and the ever-increasing opening to the outside world have accelerated the pace of Chinese companies’ “going out”.China officially released documents related to the “Belt and Road” initiative in 2015,provides a good environment for cross-border mergers and acquisitions.However,the international situation has undergone major changes in recent years,and Chinese companies are facing complex and changeable risk factors while "going out".In 2016,the amount of outbound M&A transactions by Chinese companies reached the highest in history,but the scale of transactions continued to shrink in the next few years.The reason is that the financial risks in mergers and acquisitions have continued to appear,and the low success rate in cross-border mergers and acquisitions hindered Chinese companies.The process of going to sea.Cross-border mergers and acquisitions are an investment activity with both benefits and risks.Enterprises should conduct comprehensive and prudent considerations on cross-border mergers and acquisitions,and pay attention to preventive measures against financial risks.This article combines the background of "One Belt One Road" to study the financial risks and control measures of Chinese enterprises’ cross-border mergers and acquisitions.Theoretically,it expounds the current status of domestic and foreign research on the financial risk and control of corporate cross-border mergers and acquisitions,reviews the current trends and motivations of corporate cross-border mergers and acquisitions in China,and divides financial risks into three stages according to the cross-border merger process,namely,the pre-merger Pricing risks,financing and payment risks in mergers and acquisitions,integration risks after mergers and acquisitions,and on this basis,draw on financial risk control theory,and propose corresponding risk control measures.Empirically,Geely’s acquisition of Proton is selected as a research case,combined with financial statement analysis to analyze various specific risks in the case,and the Z-score multi-judgment analysis method is used to establish a risk assessment model.The results prove that cross-border mergers and acquisitions will indeed bring companies.There are certain financial risks,and Geely’s effective risk control measures can reduce financial risks.Therefore,it is necessary for companies to implement corresponding risk control measures in mergers and acquisitions.The "Belt and Road" initiative has changed the world’s investment landscape,and Chinese companies will also face more complex new risks in cross-border mergers and acquisitions.The research in this article can put forward some constructive suggestions for enterprises and the government,strengthen the risk response ability of Chinese enterprises,and effectively improve the scale and quality of Chinese enterprises’ cross-border mergers and acquisitions.