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Impact Factor in Foreign Investors' Merger and Acquisition

Time:2014-03-13 Hit:174


Impact Factor in Foreign Investors' Merger and Acquisition


          Investors' M&A motivation, macroeconomic environment in China and system factor of regulation for Foreign Investors' M&A are selected as three variables, Logistic Regression Model was used to analyze. The result shows that the purpose of foreign M&A has gradually changed from sharing China's economic achievements by means of cheap labours in China or as shareholders in the past to the realization of global strategic layout through the pursuit of industrial integration, market potential, resource control and monopoly status.

          After 2000, along with the appearance of more and more cases of Foreign Investors' M&A (FIMA) of public companies in China, Chinese Scholars began to pay attention to and study this phenomenon. Such studies focus on the following three aspects. First, research on operative characteristics such as motivation, affect, strategies and governmental policy choice of FIMA. For example, Xu Xuemei(2001) analyzed various aspects of foreign M&A, including its internal motivation, the situation at present and feasibility, market chance and challenge, a business chance for securities companies and intermediaries, approach to M&A, market risk and system precaution. Shi Jiansan(2004) introduced in detail the occasion, industry choosing, law obstacles, approach and manner of FIMA, and profiles of public companies. Han Shikun(2004) introduced the source of foreign funds, its area and industry layout in China and the highly-possible industries, at the same time he analyzed the trend and influence of FIMA and gave some policy advice on its potential risks. Second, research on the pricing of FIMA. Wang Weimin and Zhang Shiying(2003) introduce the application of evaluation methods of the enterprise's value in the process of M&A. They compared the strengths and weaknesses of various methods and provided a decision-making foundation for risk-reducing in the operation of M&A. Ye Houyuan and Shen Junyu(2004) discussed methods of value evaluation of the target company in FIMA, and put forward a way which can ensure reasonable pricing in the trade of FIMA on the basis of analyzing target company's strategic value to the foreign investor. Third, research on the regulations of FIMA. Cao Hongjun(2005) studied theoretically the reason why the ways of introducing foreign investment are different in different phases and put forward that the positive and negative effects of FIMA have various influences on regulation policy on foreign investment in China. Lin Ping (2007) gave some advice on measures that will strengthen the regulation of antimonopoly on FIMA.

          In this paper, we analyzed relative data of FIMA companies by means of induction and statistics on the basis of sorting out typical cases of FIMA in China. The result shows that the purpose of foreign M&A has gradually changed from sharing China's economic achievements by means of cheap labours in China or as shareholders in the past to the realization of global strategic layout through the pursuit of industrial integration, market potential, resource control and monopoly status. Furthermore, we analyzed the motivation, characteristics and trend of FIMA in China and put forward corresponding advice. Yanchun Liu, Lifang Liu, Hongzheng Jin


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