Research on Financial Risk Factors under the Perspective of Cross-border Mergers and Acquisitions of Chinese Enterprises

Tianyu Luo

doi:10.54097/fbem.v12i1.14090

Authors

Tianyu Luo

DOI:

https://doi.org/10.54097/fbem.v12i1.14090

Keywords:

Cross-border M&A, Financial risks, Influencing factors.

Abstract

Chinese enterprises are increasingly participating in cross-border mergers and acquisitions (M&A). However, due to the complexity of the M&A process, poor decision-making often leads to financial risks after the completion of the M&A. Therefore, this study aims to explore the influencing factors of financial risks in cross-border M&A. The research selected 67 listed companies that engaged in cross-border M&A transactions from 2018 to 2021 as the research sample. The Z-score model was utilized to measure financial risks, and a financial risk influencing factor index system was constructed based on literature research and factor analysis to assess the financial risk status and influencing factors before and after cross-border M&A transactions. The findings of this study reveal that cross-border M&A significantly increases financial risks for enterprises, and the payment and financing stages are key factors influencing the financial risks of cross-border M&A transactions.

Downloads

Download data is not yet available.

References

Hopkins, H. D, Chaganti, R., Kotabe, M. ,&Co-editors. (1999). Cross-border mergers and acquisitions: global and regional perspectives. 5(3), 207-239.

Wei, N. (2010). Financial risk control in M&A. International conference on management science and safety engineering.

Mantecon, T. (2009). Mitigating risks in cross-border acquisitions. Journal of Banking & Finance, 33(4), 640-651.3

Warter, I. & Warter, L. (2017). Cultural due diligence in m&a. importance of soft risks factors. Annals of Spiru Haret University, Economic Series, 17(2), 38-61.

Joshi, M. K. (2020). Financial performance analysis of select indian public sector banks using altman's z-score model. SMART Journal of Business Management Studies, 16(2), 74.

Koi-Akrofi, G. (2016). Mergers and acquisitions failure rates and perspectives on why they fail. International Journal of Innovation and Applied Studies, 17(1), 150-158.