跨国并购财务风险外文翻译文献Word格式.docx

1、 As initiated by Chinese enterprises have been booming. However, compared with developed countries, Chinese enterprises started their M & As late and lacked experience and professionals. As a result, Chinese enterprises faced with numerous risks in cross-border M & As, especially15with the financial

2、 risks. This paper, based on the analysis of Chinese enterprises cross-border M & As cases in recent years, explained how the financial risks formed and finally came up with efficacious precautionary measures.Key words: Chinese enterprise; M & As; Financial; risks1. OVERVIEW OF FINANCIAL RISKS OF CR

3、OSS-BORDER M & ASFinancial risks refer to the reimbursement risks and change of returns to shareholders triggered by financing decision in the process of enterprises cross-border mergers and acquisitions （abbr. M & As）. Enterprises often go through three phasesvaluation, financing, and paymentin the

4、 process of cross-border M & As. Based on valuation, financing, and payment, decisions affect enterprises assets structure and even their solvency andreturns to their shareholders. In addition, cross-border M& As use an international currency for most countries.Change in exchange rates affects corpo

5、rate earnings, as well as shareholders returns. Therefore, there are four main types of financial risks: valuation risk, financing risk, payment risk, and exchange rate risk.2. STATUS OF CHINESE ENTERPRISES CROSS-BORDER M &Combining with going out strategy, Chinese enterprises upgrade their strength

6、 and participate in the context of economic globalization. Chinese enterprises begin to go abroad, merging and acquiring foreign ones. Although Chinese enterprises cross -border M & As started late, China has become the worlds fifth cross-border acquiring power in 2009. Status of Chinese enterprises

7、 cross-border M & As is as follows:2.1 Increases in the Number and Scale of M & AsIn the year of 2008, Chinese companies completed only 30 cases of cross-border M & As, costing less than $ 9 billion. In the year of 2013, Chinese companies completed 99 cross-border M & A, amounting to $ 38.5 billion.

8、 The number of M & As doubled, while the total amount grew more than three times.2.2 Large State-Owned Enterprises as M & As SubjectCompared with private enterprises, large state-owned enterprises have more their own capital. It is easy for them to get loans and finance, so Chinese cross-border M &

9、As are mostly done by large state-owned enterprises. On the Summer Davos Forum in 2013, Andrew, Global Chairman of KPMG International, pointed out that 86% of the Chinas for eign investment camefrom Chinasstate-owned enterprises. By far in China, the largest cross-border M & As was initiated by Chin

10、as state-owned enterprises CNOOC. On February 27, 2013, CNOOC successfully acquired Nexen Corp., a Canadian company, by spending $ 15.1 billion.2.3 Cash as the Main Form of PaymentChinas market economy status has not been recognized by all countries, and, to a certain extent, Chinese enterprises are

11、 discriminated in cross-border M & As. In addition, Chinas financial market is not perfect. In order to gain direct control of the acquired enterprises, Chinese enterprises mostly pay by cash. According to Bloomberg, 79.4% of Chinas cross-border M & As made their payment by cash, 3.3% by stock, and

12、only 1.18% by other mode.2.4 Increased Impact of Exchange Rate on M &Before the year of 2012, the floating range of RMB against U.S. dollar was only 0.5%. Since 2012, Chinas central bank adjusted the floating range of RMB against U.S. dollar to 1%, and on March 15, 2014, extended it to 2%. Compared

13、to the previous fixed exchange rate, the change of exchange rate significantly increased, which made the Chinese enterprises begin to consider the impact of exchange rate change on acquisition costs in their M & As.3. FINANCIAL RISKS FACED WITHCHINESE ENTERPRISES IN CROSSBORDER M & AS Chinese enterp

14、rises began to participate in cross-border M & As actively only in the past ten years. The lack of experience made it difficult to accurately value the target enterprises. Chinas financial market is not mature, it is difficult for Chinese enterprises to finance and choose payment mode. At the same t

15、ime, the international financial market fluctuates, andRMB is not aninternational monetary. Cross-border M & As is done by dollar or euro, which brings risks to Chinese cross-border M &3.1 The Valuation RiskDetermination of the transaction price of M & As is actually a game playing by initiators and targets of M & As. Under normal circumstances, the initiators can not fully grasp the information of target corporat