Analysis of Cross-border Mergers and Acquisitions Based on Social Network Method

Abstract

Abstract:

With the economic globalization and the deepening of national industrial integration, cross-borderM&As have become an important way of global resources allocation and direct foreign investment. The cross-border M&As construct a complicated network and the traditional research methods cannot describe the development and the periodic variation characteristics. So we divide the cross-border M&A into three periods——the rapid development, the shock adjustment and continued stability, with the social network method we find that cross-border M&As have the following characteristics:1) the cross-border M&A has a "center-half edge-edge" topological structure characteristic; 2) the distribution of weighted degrees show that the network of cross-border M&As is scale-free network with the typical Richman's Club features; 3) the weighted degree distribution ratio of typical countries reflects nation economic stage and power, active purchasing strategy is a necessary condition to be the central part of cross-border M&A. The transaction time is long and the transaction efficiency is low on average in a developing country. We put forward three policy suggestions:1) Strengthen scientific and technological innovation to improve the economic strength of China; 2) Simplify the approval process of cross-border M&A and improve administration efficiency; 3) Expand the policy of opening to the outside world and encouraging the cross-border capital.

Key words: cross-border M&As, social network analysis, network centrality, weighted-degree distribution

Dong Jichang, Jiao Danxiao, Sun Xilong. Analysis of Cross-border Mergers and Acquisitions Based on Social Network Method[J]. , 2016, 28(10): 202-213.

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