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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Research on the Prevention of External Risks in Overseas Mergers and Acquisitions of the Mainland Chinese Enterprises

Asif Mahbub Karim, Lei Jianqiang, Feng Weiwei

http://dx.doi.org/10.6007/IJARAFMS/v11-i3/10623

Open access

Thanks to the expansion of economic globalization and the unceasing progress of science and technology, overseas Mergers and Acquisitions (M&A) have developed into a current trend. On the one hand, globalization has offered opportunities and possibilities to the global economy while, on the other hand, it has also posed more risks and challenges simultaneously. Fueled by the strong momentum of globalization, economic integration, national strategy and foreign investment policy, Chinese enterprises have undergone a swift growth and then continued to decline in respect of the scale of cross-border M&A. Chinese enterprises are confronted with enormous external risks throughout overseas M&A, and the number of cases influencing the process of overseas M&A of Chinese enterprises keeps on the rise every year on account of political, legal and cultural risk factors. The success rate of M&A can be increased to a certain degree by choosing reasonable financing channels, hiring a specialized M&A team and comprehending cultural differences, thereby boosting the development of corporate M&A.

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In-Text Citation: (Weiwei et al., 2021)
To Cite this Article: Weiwei, F., Karim, A. M., & Jianqiang, L. (2021). Research on the Prevention of External Risks in Overseas Mergers and Acquisitions of the Mainland Chinese Enterprises. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(3), 168–176.