Intercultural aspects of Mergers & Acquisitions in consideration of the Chinese market PDF Download

Author: Sebastian Hermann
Publisher: GRIN Verlag
ISBN: 3640122313
Category : Business & Economics
Languages : en
Pages : 78

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Book Description
Bachelor Thesis from the year 2008 in the subject Business economics - Miscellaneous, grade: 1,8, University of Applied Sciences Essen, language: English, abstract: For many years the number and value of cross-border mergers and acquisitions (M&A) has increased. Although cross-border M&A seem to be a very attractive mode of entering foreign markets by having the aim to increase market power, improve efficiency through synergy, size, risk diversification or financial motivations, most M&A waste shareholders' value. This Bachelor Thesis illustrates the risk potential of M&A by analysing problems due to cultural differences in China.

Author: Cristiano Rizzi
Publisher: Kluwer Law International B.V.
ISBN: 9041142134
Category : Law
Languages : en
Pages : 288

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Book Description
This hugely informative book - unique in its overarching emphasis on the laws governing M&As and takeovers in China - not only shows those interested in investing in China how to avoid legal mistakes and miscalculations. In addition to offering singular interpretive analysis of strictly legal matters, the authors concentrate extensively on the all-important cultural and environmental factors that can make business in China daunting for the uninitiated. Extending this double emphasis on cultural understanding and M&A and takeover expertise, the authors clearly explain such elements of how to enter the Chinese market (or expand a presence in it) as the following: concepts of guanxi and mienzi; understanding China’s rising middle class; valuation of state-owned assets; maximum permitted debt-to-equity ratios; key PRC government agencies involved in the approval of transactions; taxation framework for enterprise restructuring in China; employees as an asset; share swaps; prohibited trading activities when acquiring a listed company; legal framework for dispute resolution; administrative proceedings; liabilities for breach of contract; and responding to intellectual property rights abuse. The authors provide precise details on the characteristics of, and procedures involved in, the wide range of investment options available in China, with knowledgeable guidance on the choice of investment options and protection of investor interests. Because China is clearly a major global economic force and will continue to be so in the foreseeable future, this thorough but down-to earth guide is of immeasurable practical value to foreign investors of every kind, from multinational corporations to individual venture capitalists.

Author: Jürgen Rothlauf
Publisher: Walter de Gruyter GmbH & Co KG
ISBN: 3110397900
Category : Business & Economics
Languages : en
Pages : 371

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Book Description
Whatever their industry of origin, all companies are facing the same challenge to a greater or lesser degree: globalization. It is becoming more and more evident that companies need to plan ahead and anticipate coming developments if they are to be successful in the future. Today, it is crucial to establish a solid competitive position in the global arena. There is no doubt that a corporate culture that is open to innovation and shaped by global thinking, plays a key role in this context. A culture in which representatives of different countries und cultures can come together, anticipating and understanding the cultural challenges, creates the foundation of any international business. A global view on intercultural management will be the key to successfully doing business in diverse cultural environments.

Author: Olivier Coispeau
Publisher: World Scientific
ISBN: 9814641049
Category : Business & Economics
Languages : en
Pages : 340

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Book Description
Mergers & Acquisitions and Partnerships in China provides a fast and accessible framework to external growth in China, and is an attempt to accurately describe the main operative conditions and in particular the most common pitfalls for foreign businessmen. The business cases in this book illustrate real business situations, including different outcomes and a thorough analysis of the reasons for success or failure of the case. The authors provide all the necessary tools to better master the negotiation and transaction process, and provide in particular, detailed explanation on the due diligence process and the regulatory framework to help readers successfully lead acquisitions in China. Written by well-known experts in finance, law, and management, who all have deep business knowledge of China, the book aims to help practitioners, such as law firms, audit and advisory firms, and entrepreneurs to start or grow their businesses in China through successful partnerships, and acquisitions and mergers by explaining how these aspects are regulated by a complex web of laws, regulatory, and political practices in a context where the state plays a key role in the approval of important transactions.

Author: Jianxun Chen
Publisher: Edward Elgar Publishing
ISBN: 9781782542247
Category : Business & Economics
Languages : en
Pages : 200

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Book Description
Discusses cross-border mergers and acquisitions (M & A) by Chinese companies, mainly to clarify their strategies and the effect of their M & A at an international level. This book is suitable for multinational enterprise managers, brokers, dealers and investors.

Author: Hannes Mungenast
Publisher: GRIN Verlag
ISBN: 3638674053
Category : Social Science
Languages : en
Pages : 64

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Book Description
Seminar paper from the year 2007 in the subject South Asian Studies, South-Eastern Asian Studies, grade: 87, Dongbei University of Finance and Economics (School of International Business), course: Chinese Financial System, 31 entries in the bibliography, language: English, abstract: China is a fast growing economy. Therefore a lot of companies intend to enter this market. Mergers & Acquisitions (M&A) are a useful tool to do so. First of all, it is important to understand the key principles of M&A. Therefore chapter 2 gives a summary of the most important aspects of mergers and acquisitions in general. Chapter 3 gives an introduction to the Chinese M&A market. It will deal with statistics concerning inbound and outbound deals, FDI and an overview of M&A advisory and investment banks. Chapter 4 will focus on the current situation of M&A activity and foreign direct investment (FDI) in China. FDI is another method for entering a market and is a competing tool to M&A. It will also present some examples of M&A where Chinese companies were involved. Chapter 5 deals with the importance of the stock market for M&A activity. After that, the most important aspects of M&A activities in the Chinese financial industry will be shown. First, an overview of the banking industry in China will be presented and the problems will be shown. After presenting the reasons for foreign companies to enter the Chinese financial market, the M&A activities in that sector will be shown and evaluated.

Author: Jan-Henrik Thomas
Publisher: GRIN Verlag
ISBN: 3640525485
Category : Business & Economics
Languages : en
Pages : 26

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Book Description
Research Paper (undergraduate) from the year 2009 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, University of Applied Sciences Essen, course: Intercultural Competences, language: English, abstract: The following term paper deals with the topic of managing intercultural aspects in corporate mergers and acquisitions. It focuses on the intercultural aspects of human resistance to change in the PMI phase of corporate mergers. „Those who underestimate or ignore the human factor do so at their peril.“ Over the last two decades mergers & acquisitions are increasingly used to protect and to strengthen the market positions of companies. Due to the continuing globalization of markets, mergers and acquisitions have become a part of daily business. To survive in high competitive markets evermore companies use the possibility to merge or acquire a competitor because this is seen as a relatively fast and efficient method of expanding in new markets and of implementing new technology. In a highly flexible market environment, as it is nowadays, organisations have to be efficient, profitable, future orientated and adaptable to the fast development of the global economy. Otherwise they would not have the option to play a dominant and leading role in their markets. Therefore companies depended on a successful M&A process which is manly influenced by the capabilities and skills of managing and implementing the change effectively, although this is a major challenge. As figure 1 shows, companies are highly aware of financial objectives like the increase of sales or the reduction of costs. It is often the case that companies’ financial prospects seem to be excessively high, which in the end leads to multiple missed objectives and even to entirely failed PMIs. Whereas some cases can be explained by financial or market based reasons, there is noticeable amount based on the neglect of human resource issues. Many companies are aware of these facts and thus conduct well structured analysis to satisfy the needs of their employees and at the same time to reach their strategic and financial goals. Nevertheless, they tend to ignore the “people issues” because these soft factors are difficult to measure quantitatively. As various companies gladly give lip services like “our employees are the most important resource”, divers studies prove that these deliberations play a subordinated role in reality.

Author: Lusong Zhang
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 294

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Book Description
Since its accession to the World Trade Organization (WTO), China has undertaken stronger initiatives toward adapting its legal system to support the development of a market-oriented economy. However, in this important new study the author contends that Chinaand’s steps in this direction are not sufficient. Although barriers to merger and acquisition (Mand&A) targeting of state-owned enterprises (SOEs) have been significantly reduced, excessive administrative intervention continues to discourage foreign Mand&Ainvolving domestic listed companies. This book proposes changes in Chinese law, including a new full-scale regulatory scheme, which would enhance and expand such foreign direct investment. The discussion proceeds from the perspectives of company law, securities law, antimonopoly law, and foreign investment law. Based on the analysis of the market situation and policy background in China, and on a comparison among the relevant aspects of the legal systems of China and other jurisdictions, the book addresses the Chinese legal system for foreign Mandamp;A involving listed companies, including its policy support. The analysis highlights such aspects as the following: and• features and structures of the current Chinese foreign Mandamp;A market; and• China's state-owned enterprise reform and• functions of the Chinese stock market; and• Chinese foreign investment policy; and• components of the Chinese legal system specific to foreign Mand&A; and and• comparative studies of foreign Mandamp;A regulation and experience (US, EU, UK, and Russia) and what may be useful in each for China. The authorand’s detailed recommendations for the improvement of the Chinese legal system primarily concern the regime of state ownership exercise, the establishment of an antitrust scheme, the improvement in the regulation of corporate takeovers, and national treatment of foreign investors under the WTO system. This is in every way a ground-breaking contribution to the literature of international trade law. The authorand’s deeply informed and cogent analysis will be of immeasurable value to policy makers and academics across a range of fields, and the bookand’s practical value to business persons everywhere with an eye on China cannot be overestimated.

Author: Chris Devonshire-Ellis
Publisher: Springer Science & Business Media
ISBN: 3642149197
Category : Business & Economics
Languages : en
Pages : 112

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Book Description
This guide takes a detailed look at all aspects of purchasing part or all of a business in China. Written specifically for businesses to understand all the nuances of China M&A, it details the complete regulatory processes involved as well as the differences that arise when handling M&A between private Chinese companies, Chinese State-Owned Enterprises, and Chinese Listed Corporations. It also deals with the acquisition of bankrupt assets and auction procedures. China Briefing's guides are leaders in their field, provide practical and pragmatic legal and tax information for foreign investors in the PRC and are of specific interest to all businessmen, lawyers, accountants, advisors and academics working in this field.

Author: Xiaojing Song
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
Over the last several years (and especially since China's admission to the World Trade Organisation in 2001) merger and acquisition (M&A) activities in China have increased significantly as a result of the rapid growth in the Chinese economy and the measures which the Chinese government has taken to modernise the laws and regulations which govern its securities markets. Despite this, only a few researchers have studied M&A activities in China in any depth. Moreover, such research as has been conducted on Chinese M&A activities is mainly concerned with the laws and regulations affecting the area and not with their economic consequences. Hence, the particular concern of this dissertation is with the economic benefits that accrue to the shareholders of Chinese acquiring and target firms from the M&A activities that have occurred in the People s Republic of China over the last twenty years. In particular, our study encompasses a theoretical, institutional and empirical analysis of Chinese M&A activities. M&A activities in China are governed by a number of laws and regulations of which the Takeover Measures, 2006, is undoubtedly the most important. Our analysis in the early part of the dissertation summarises the legal framework under which M&A activities are conducted in China. In particular, the Takeover Measures, 2006 aim to make Chinese laws in the M&A area more compatible with best international practice. Furthermore, a new Anti-Monopoly Law, which addresses the anti-trust issues associated with mergers and acquisitions came into force on 1 August 2008. Amongst other things, this new Anti-Monopoly Law addresses issues of anti-trust and declaration thresholds in M&A activities in China. Besides these issues, the early chapters of the dissertation summarise the Chinese laws dealing with cross-border mergers and acquisitions, the laws relating to the issue of new shares, the laws relating to share swap transactions and the important provisions affecting the regulation of special purpose companies (SPCs). The dissertation then turns to an empirical analysis of the economic benefits which accrue to the shareholders of Chinese target and Chinese acquiring firms as a result of their M&A activities. Our analysis is based on the standard market model methodology using both the Dimson (1979) and Ordinary Least Squares (OLS) estimates of equity betas. We also employ an hitherto unused nonparametric testing procedure based on the Corrado (1989) rank test in order to enhance the robustness of our empirical analysis. Suffice it to say that the empirical analysis summarised in the dissertation shows that there are significant abnormal returns around the takeover announcement date for the holders of equity securities in Chinese target firms. This is a result which mirrors much of the empirical research conducted on M&A activities in western economies. Interestingly, however, a significant proportion of these abnormal returns decay away within a few weeks following the takeover announcement date. In contrast, there are few, if any, economic benefits for the holders of equity securities in Chinese acquiring firms from their M&A activities. In this respect our results for Chinese acquiring firms are very similar to those obtained by researchers for western acquiring firms, although there are some important differences. In particular, there appear to be statistically significant and positive abnormal returns for shareholders of Chinese acquiring firms around the takeover announcement date but these generally decay away over the next ten to fifteen trading days thereby leaving the shareholders of Chinese acquiring firms with no significant benefits from their M&A activities. We provide some possible explanations for this phenomenon by linking our empirical results with the Chinese political, economic and capital systems. A fundamental decision the directors of acquiring firms must make is whether the mode of consideration for takeovers ought to be in cash or some alternative medium of exchange. Prior research in western countries shows that the mode of consideration used in takeovers can have a significant impact on the abnormal returns which accrue to the shareholders of both acquiring and target firms. Our empirical analysis of this issue shows that when the mode of consideration is purely in cash the abnormal returns which accrue to the shareholders of Chinese target firms around the takeover announcement date are positive and significantly different from zero. In contrast, there are no economic benefits (and indeed, probably economic losses) for the shareholders of Chinese target firms when the consideration for takeovers is other than purely in cash. For Chinese acquiring firms there are significant positive abnormal returns when the consideration for takeovers is other than purely in cash. However, when cash is used as the sole mode of consideration by Chinese acquiring firms there are very few, if any, economic benefits for their shareholders. The concluding sections of the dissertation note that our calculation of the abnormal returns that accrue to firms involved in Chinese M&A activities is based exclusively on the standard market model - which is empirical counterpart of the Capital Asset Pricing Model (CAPM). In recent years, however, Fama and French (1992, 1993, 1995, 1996) amongst other authors have suggested that the CAPM has serious deficiencies and that these deficiencies flow through to the standard market model on which the empirical analysis of Chinese M&A activities summarised in this dissertation is based. We show, however, that the Fama and French Asset Pricing Model (1992, 1993, 1995, 1996) has numerous deficiencies of its own and that to base the calculation of abnormal returns upon this model has the potential to lead to a seriously flawed analysis of the abnormal returns which accrue to the shareholders of Chinese firms involved in M&A activities and on which our empirical analysis is based. Key Words: M&A activities, Modified Corrado test, Corrado test, Patell test, average abnormal returns (AARs), cumulative average abnormal returns (CAARs), mode of consideration, A shareholders, B shareholders, H shareholders, Chinese target firms, Chinese acquiring firms.