Title :
Cross-border Merger and Acquisitions, Government Regulations and Market Competition
Author :
Zu-hai, Tian ; Jiang-jiao, Wang
Author_Institution :
Wuhan Univ. of Technol., Wuhan
Abstract :
Cross-border (M&As) have long been a popular strategy for transnational companies (TNCs) and will inevitably influence competitive behaviors and patterns of the host countries´ markets. This paper demonstrates the mechanism and results of these effects by constructing a Nash-Cournot model, with government as a participator in cross-border (M&As). In the model, the factors of government regulation are discussed in the market competition framework on the basis of cross-border (M&As). The basic conclusions this paper drew are: the total output will reduce because of government regulations; enterprises - foreign enterprise (TNCs) and domestically-funded enterprise (host country´s enterprise) will decrease their outputs, but the decrease of the former one will not exceed the latter; foreign investing enterprise can maintain, even increase its output when it involves in the Cournot competition with the domestic investing enterprise for the factor of corporate governance optimization; and different modes of government regulations will lead to different market structures.
Keywords :
government policies; investment; marketing; regulation; Cournot competition; Nash-Cournot model; corporate governance optimization; cross-border acquisitions; cross-border merger; domestic investing enterprise; domestically-funded enterprise; enterprises-foreign enterprise; government regulations; market competition; market competition framework; Conference management; Corporate acquisitions; Engineering management; Fault detection; Government; Investments; Knowledge transfer; Production; Technological innovation; Technology management; Nash-cournot equilibrium; competitive behaviors; cross-border merger and acquisitions (M&As); government regulation;
Conference_Titel :
Management Science and Engineering, 2007. ICMSE 2007. International Conference on
Conference_Location :
Harbin
Print_ISBN :
978-7-88358-080-5
Electronic_ISBN :
978-7-88358-080-5
DOI :
10.1109/ICMSE.2007.4422040