跨国并购财务风险外文翻译文献.docx

跨国并购财务风险外文翻译文献.docx

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跨国并购财务风险外文翻译文献

跨国并购财务风险外文翻译文献

（文档含英文原文和中文翻译）

FinancialRisksofChineseEnterprises’Cross-BorderMergersandAcquisitions

Abstract

WithoverallstrengthofChineseenterprisesandnationalgoingoutstrategy,cross-borderM&AsinitiatedbyChineseenterpriseshavebeenbooming.However,comparedwithdevelopedcountries,ChineseenterprisesstartedtheirM&Aslateandlackedexperienceandprofessionals.Asaresult,Chineseenterprisesfacedwithnumerousrisksincross-borderM&As,especially

15

withthefinancialrisks.Thispaper,basedontheanalysisofChineseenterprises’cross-borderM&Ascasesinrecentyears,explainedhowthefinancialrisksformedandfinallycameupwithefficaciousprecautionarymeasures.

Keywords:

Chineseenterprise;M&As;Financial;risks

1.OVERVIEWOFFINANCIALRISKSOFCROSS-BORDERM&AS

Financialrisksrefertothereimbursementrisksandchangeofreturnstoshareholderstriggeredbyfinancingdecisionintheprocessofenterprises’cross-bordermergersandacquisitions（abbr.M&As）.Enterprisesoftengothroughthreephases—valuation,financing,andpayment—intheprocessofcross-borderM&As.Basedonvaluation,financing,andpayment,decisionsaffectenterprises’assetsstructureandeventheirsolvencyandreturnstotheirshareholders.Inaddition,cross-borderM&Asuseaninternationalcurrencyformostcountries.Changeinexchangeratesaffectscorporateearnings,aswellasshareholders’returns.Therefore,therearefourmaintypesoffinancialrisks:

valuationrisk,financingrisk,paymentrisk,andexchangeraterisk.

2.STATUSOFCHINESEENTERPRISES’CROSS-BORDERM&AS

Combiningwithgoingoutstrategy,Chineseenterprisesupgradetheirstrengthandparticipateinthecontextofeconomicglobalization.Chineseenterprisesbegintogoabroad,mergingandacquiringforeignones.AlthoughChineseenterprises’cross-borderM&Asstartedlate,Chinahasbecometheworld’sfifthcross-borderacquiringpowerin2009.StatusofChineseenterprises’cross-borderM&Asisasfollows:

2.1IncreasesintheNumberandScaleofM&As

Intheyearof2008,Chinesecompaniescompletedonly30casesofcross-borderM&As,costinglessthan$9billion.Intheyearof2013,Chinesecompaniescompleted99cross-borderM&A,amountingto$38.5billion.ThenumberofM&Asdoubled,whilethetotalamountgrewmorethanthreetimes.

2.2LargeState-OwnedEnterprisesasM&AsSubject

Comparedwithprivateenterprises,largestate-ownedenterpriseshavemoretheirowncapital.Itiseasyforthemtogetloansandfinance,soChinesecross-borderM&Asaremostlydonebylargestate-ownedenterprises.OntheSummerDavosForumin2013,Andrew,GlobalChairmanofKPMGInternational,pointedoutthat86%oftheChina’sforeigninvestmentcame

fromChina’s

state-ownedenterprises.ByfarinChina,thelargestcross-borderM&AswasinitiatedbyChina’sstate-ownedenterprisesCNOOC.OnFebruary27,2013,CNOOCsuccessfullyacquiredNexenCorp.,aCanadiancompany,byspending$15.1billion.

2.3CashastheMainFormofPayment

China’smarketeconomystatushasnotbeenrecognizedbyallcountries,and,toacertainextent,Chineseenterprisesarediscriminatedincross-borderM&As.Inaddition,China’sfinancialmarketisnotperfect.Inordertogaindirectcontroloftheacquiredenterprises,Chineseenterprisesmostlypaybycash.AccordingtoBloomberg,79.4%ofChina’scross-borderM&Asmadetheirpaymentbycash,3.3%bystock,andonly1.18%byothermode.

2.4IncreasedImpactofExchangeRateonM&As

Beforetheyearof2012,thefloatingrangeofRMBagainstU.S.dollarwasonly0.5%.Since2012,China’scentralbankadjustedthefloatingrangeofRMBagainstU.S.dollarto1%,andonMarch15,2014,extendeditto2%.Comparedtothepreviousfixedexchangerate,thechangeofexchangeratesignificantlyincreased,whichmadetheChineseenterprisesbegintoconsidertheimpactofexchangeratechangeonacquisitioncostsintheirM&As.

3.FINANCIALRISKSFACEDWITH

CHINESEENTERPRISESINCROSSBORDERM&ASChineseenterprisesbegantoparticipateincross-borderM&Asactivelyonlyinthepasttenyears.Thelackofexperiencemadeitdifficulttoaccuratelyvaluethetargetenterprises.China’sfinancialmarketisnotmature,itisdifficultforChineseenterprisestofinanceandchoosepaymentmode.Atthesametime,theinternationalfinancialmarketfluctuates,and RMBisnotan internationalmonetary.Cross-borderM&Asisdonebydollaroreuro,whichbringsriskstoChinesecross-borderM&As.

3.1TheValuationRisk

DeterminationofthetransactionpriceofM&AsisactuallyagameplayingbyinitiatorsandtargetsofM&As.Undernormalcircumstances,theinitiatorscannotfullygrasptheinformationoftargetcorporat