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Title: Mergers and acquisitions of Chinese state owned enterprises by privately owned enterprises
Author: Dong, Jie
ISNI:       0000 0001 3428 8370
Awarding Body: University of Manchester
Current Institution: University of Manchester
Date of Award: 2006
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Since the late 1980s, mergers and acquisitions (M&As) have started to take place in China. In recent years, M&As have become an increasingly common strategy used not only by Chinese enterprises seeking expansion, but also by foreign finns interested in direct entry. The transaction fees have also jumped from $32.1 million in 1985 to $70 billion in 2004. However, due to the special economic environmel1t, M&As in China have been influenced by the shadow of economic planning and limited by intervention from the govemment, especially the M&As that concem with stated owned assets. This study intends to uncover the critical influences that have significant value-added impacts on M&A of privately owned enterprises in China. An integrated and holistic viewpoint that includes the most critical rational choice perspective within a multidimensional framework will be employed. Key factors in the areas of govemment, strategic fit, and organizational fit are explored and analyzed in nom1al qualitative ways, which based on two case studies as the research methodology throughout the study. The findings of this study suggest that Govemment is considered to be the important factor influencing the decision making of the enterprises and the integration management of the M&A, which is helpful for the resources reallocation and organizational compatibility. Differences in resource allocation also can be considered as the most important strategic complementarity in the pre-acquisition phase to achieve the synergy. Key factors in the integration management phase are effective integration of personnel characteristics, and culture fit. Employees' conciliation and effective leadership as personnel characteristics can be considered as the crucial factors to the successful M&A. The 'soft' and 'supportive' acculturation of culture concept, and the incentive and supervisory mechanism; and integration of the management system have also been found as the major approaches to integrate the culture. The findings in this study also indicate that unsound agency service, ambiguous attitude from the govemment, incomplete related law and regulations are still obstacles to positive M&A perfom1ance. The study findings will expand the domain of Chinese M&A studies, enlarge the domain of the rational choice perspective, establish a multidisciplinary Chinese M&A model, which help to improve Chinese industry academics' and practitioners' understanding of important M&A phenomena not only leading to significant successful upgrading of industry (transfom1 from completion of the original accumulation to mass production stage); but also providing with a meaning of demonstration and popularisation to the refom1 of the state owned enterprises.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available