Abstract
Research on the Prevention of External Risks in Overseas Mergers and Acquisitions of the Mainland Chinese Enterprises
Highlights
Thanks to the expansion of economic globalization and the unceasing progress of science and technology, overseas Mergers and Acquisitions (M&A) have turned into a way for corporate development
In 2020, the Chinese government made it clear that "we will expedite the formation of a new pattern of development in which China's domestic cycle is the mainstay and both domestic and international cycles reinforce each other." Currently, China's epidemic situation has been under effective control, and its GDP increased by 2.3% in 2020
Jiang Qiankun and Xu Rui (2021) consider that if enterprises fail to know enough about the risks they may encounter in the course of overseas M&A, or if they deal with the risks improperly, they will probably confront the failure of mergers and acquisitions
Summary
Thanks to the expansion of economic globalization and the unceasing progress of science and technology, overseas Mergers and Acquisitions (M&A) have turned into a way for corporate development. In 2020, the Chinese government made it clear that "we will expedite the formation of a new pattern of development in which China's domestic cycle is the mainstay and both domestic and international cycles reinforce each other." Currently, China's epidemic situation has been under effective control, and its GDP increased by 2.3% in 2020. In 2020, affected by the COVID-19 epidemic and the international political situation, overseas M&A activities of the Chinese mainland enterprises were badly hit, and engaging in overseas M&A was extremely difficult, especially in developed markets such as those of the United States and Europe; the amount of overseas M&A transactions dropped to the lowest value since 2010. There were 253 transactions for private enterprises in mainland China and 123 transactions for state-owned enterprises in the mainland China, and private enterprises in the mainland China were more active by contrast
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