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Hongxiao Zhou

DBA Graduate - 2017

Thesis title

The environmental factors and motivations of merge and acquisition : a study on Chinese private firms

Supervisor(s)

Sizhong Wu

Hongxiao Zhou was born in 1967 and has served as deputy director of the office, director of the  operations department, and deputy chief director of the institution in charge of investment affairs. He has been promoting effective, beneficial, and advantageous investment policies made by the Henan Province Government and encouraging entrepreneurs to invest in Henan. Every year, through his introductions and negotiations, numerous investments have successfully landed in Henan Province.

Purpose This study seeks to determine the key factors behind the M&A intention of Chinese Private-funded enterprises to merge and acquire State-owned Enterprises, and to generalize the influencing pattern between antecedents and consequences. Design/methodology/approach Through methods such as questionnaire design, variable operation definition and measurement, data collection, data analysis methods and CITC test, a reliability analysis and explorative factor analysis of the pre-survey test data, it has removed several questions with a relatively low relevancy and further revised the overall wording of the questionnaire to form the final questionnaire.Adopting a structural equation model, this dissertation has conducted an empirical test on the path relationship between each variable of the model through 451 sample data. The results of the test indicate that the paths of research hypothesis of most models have been supported by the data of empirical research. Findings In the concerned M&A, the competition environment, economic environment and policy environment have a distinctive positive impact on the capital, innovation and market elements; the competition environment and policy environment have a distinctive positive impact on the M&A intention, while economic environment has no distinctive impact on the M&A intention; the capital element and innovation element both have no distinctive impact on the M&A intention, while the market element has a distinctive positive impact on the M&A intention. Research limitations/implications In the future, case study methods can be adopted to study the real M&A behaviors to fill up the theoretical gap from the intention to the real behaviors. Practical implications In making a M&A decision, civilian-run enterprises should fully consider the transmission effect of internal factors Originality/value This dissertation includes the six elements of drivers extracted from literature analysis into the regular triangle stable model to get a model of drivers for Chinese civilian-run enterprises to merge and acquire state-owned enterprises. The internal driving force of the enterprise for M&A originates from the supply and demand relationship of market, innovation and capital. The three elements together form a complete logic chain for the production and operation of the enterprise. Only when all elements achieve a balance can the enterprise operate most efficiently (and unleash a synergy effect). Keywords: M&A Intention; Chinese Private-funded Enterprises; Chinese State-owned Enterprises