Research on Chinese oversea M&A practices from the financial perspective
论文作者：留学生论文论文属性：essay登出时间：2010-06-20编辑：charlie点击率：248

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关键词：Chinese overseaM&Apracticesfinancial perspectiveFDIChinese enterprises

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Abstract
Along with the economic integration and economic liberation across the world, in whether developed countries or developing countries, international merger and acquisition (M&A) has been booming like the bamboo shoots after spring rains. Moreover, it has also become one of the most significant forces promoting the increasing global economic development especially the growth of foreign direct investment (FDI). In China, oversea M&A activities are still fresh which lack enough successful experience. Do Chinese enterprises have no abilities to conduct oversea M&A? How can they effectively improve their performances in oversea M&A activities? In order to analyze the feasibility for Chinese enterprises to conduct oversea M&A activities and to explore the inherent causes of Chinese enterprises’ failures or success in M&A activities, this dissertation will choose the perspective of financial problems and conduct overall analyses of practices and theories in relation with Chinese enterprises’ oversea M&A. Since China entered in to WTO, Chinese enterprises have been put into a global environment full of serious competitions, therefore the study of how to effectively improve their competencies in the altered international environment is of big essence. The main content of this dissertation includes four parts. The first part (namely the Chapter 2) is a literature interview in which many famous global findings will be introduced. The second part (namely the Chapter 3) is concerned with methodology of this research. The third part (namely the Chapter 4) is case study so as to give a telling and reasonable reliability of the author’s recommendations. Case 1 will explore the example of Lenovo Company’s successful acquisition of private computer (PC) department of IBM. Case 2 is mainly focused on the example of TCL Corporations’ failed M&A activities.
Key words: Overseas M&A; Financial strategy; Risk of M&A; Motivation theory of M&A; Financial capacity; Performance appraisal system of M&A

Table of contents
Acknowledgements 1
Abstract 2
Chapter 1: Introduction 5
1.1 Research background 5
1.1.1 The global background of M&A 5
1.1.2 The Chinese background of M&A 8
1.2 The research aims and objectives 9
1.3 The importance of this research 10
1.4 The limitations of this dissertation 11
1.5 The organisation of this dissertation 11
Chapter 2: Literature review 13
2.1 The theories in relation with international merger and acquisition (M&A) 13
2.1.1 Brief introduction 13
2.1.1.1 Motivation theory 14
(1) Efficiency theory 14
(2) Market留学生论文 power theory 16
(3) Lower transaction cost theory 16
(4) Other motivations theory 16
2.1.1.2 Foreign direct investment (FDI) theory 17
(1) Traditional prevailing FDI theory 18
(2) FDI theory in developing countries 19
2.1.2 The feasibility of oversea M&A for Chinese enterprises 22
2.1.2.1 Analyses from the angle of motivation theory 22
2.1.2.2 Analyses from the angle of FDI theory 23
2.2 Financial strategic problems in oversea M&A activities 25
2.2.1 Brief introduction 25
2.2.1.1 Basic knowledge of financial strategy 25
(1) Conceptions 25
(2) Characteristics 25
(3) The objectives of modern enterprises’ strategic management 26
2.2.1.2 Typical findings in China 27
2.2.2

Chinese enterprises’ financial strategic problems in oversea M&A activities 29
2.2.2.1. Financial environment of oversea M&A 30
(1) External environment 30
(2) Interior environment 31
2.2.2.2 Financial strategies of oversea M&A 31
(1) Financing combination strategy 32
(2) Operation on borrowings strategy 32
(3) Matching the benefits up with risks strategy 33
2.2.2.3. Financial capacities of oversea M&A 33
2.3 Risks of M&A 33
2.3.1 Global findings 34
2.3.2 Analyses of Chinese enterprises’ M&A risks 34
2.3.2.1 Political and legal risks 35
2.3.2.2 Target pricing risks 36
2.3.2.3 Financing risks 36
2.3.2.4 Integration risks 36
2.4 Performance appraisal of oversea M&A 37
2.5 The evaluation of existing findings 39
Chapter 3: Methodology 41
3.1 Planning the research 41
3.2 Data collection 42
(1) Secondary data 42
(2) Primary eassy代写 data 43
3.3 Limitations and further study 45
Chapter 4: Case study 47
Case 1 Lenovo 47
4.1.2 Analyses 49
(1) Evaluation of financing combination strategy 49
(2) Evaluation of strategy of operation on borrowings 50
(3) Evaluation of the strategy of matching benefits up with risks 50
Case 2 TCL 51
4.2.2 Analyses 52
(1) The selection of B (the objective in M&A) is inappropriate 52
(2) The price is unreasonable 52
(3) Lack the ability to control the financial risks 53
(4) Much trouble in integration after M&A 53
(5) Lack of the assist of professional intermediaries 53
Chapter 5: Conclusion and Recommendation 55
References 56

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