Chinese M＆A,Opportunities ＆ Risks

Recently, the cases of Chinese enterprises＇ merger and acquisition are emerging in multitude. It is believed that M＆A will provide opportunities for China enterprises to go global and act in the global economic environment. China enterprises also want high margin profits that are accessible in Western Europe and North America. Judging from the current situation, many companies are not short of money, the banks can also provide a large-scale lending for Chinese companies＇ overseas M＆A. So, the overseas M＆A is feasible in the current circum-stance.     

ROK, China Strive for Mutual Economic and Trade Benefits

The President of the Republic of Korea （ROK） Roh Moo-hyun announced that Korea fully recognized China＇s market economy status. Roh＇s announcement was made during a joint press conference with Chinese President Hu Jintao, who was on a state visit to ROK in November. China is now the largest trading partnet of ROK, with trade volume between the two countries expected to reach 100 billion US dollars this year. The two leaders agreed that the bilateral trade volume should be doubled to 200 billion US dollars by 2012. A significant milestone having been reached between the two countries, what kind of impact can be expected to follow from the events in regards to the bilateral economic and trade relations between China and ROK？ With such questions in mind, China＇s Foreign Trade reporters interviewed Kim Ha-joong, Ambassador of ROK to China.     

Chile：Close Tie between China and Latin America

Chile was the first country in South America to establish a diplomatic relationship with China more than 38 years ago.Since then,with the bilateral free trade agreement in place,Chile has become China＇s second-largest trading partner in Latin America,and China is currently Chile＇s largest trading partner in the world.In April of 2008,China and Chile signed the Supplementary Agreement on Trade in Services of the Free Trade Agreement between the Government of the People＇s Republic of China and the Government of the Republic of Chile in Sanya, Hainan province.This was a historical milestone marking the longstanding relationship between China and Chile.To learn more about this bilateral relationship,China＇s Foreign Trade invited Mr.Mario I.Artaza,Director Commercial Office Trade Representative at the Beijing Embassy of Chile in China,to give us his point of view on the current business and economic environment that exists between these two countries.     

Cooperation of Neighboring Countries:A Common Awareness for China and Mongolia——An interview with H.E. Amarsanaa,Ambassador of Mongolia to China

After Mongolian President Bagabandy's visit to China in July this year, China and Mongolia strengthened neighborly and friendly bilateral relations and opened a new chapter for cooperation in many fields. More than two months passed since then, how are the cooperative agreements that both side signed going on? What will the two countries do in future? Below is the interview with H.E. L. Amarsanaa, Ambassador of Mongolia to China, in which he stated the President's visit and introduced economic and trade cooperation between two countries recently.     

Cooperation of Neighboring Countries：A Common Awareness for China and Mongolia——An interview with H.E.Amarsanaa,Ambassador of Mongolia to China

After Mongolian President Bagabandy‘s visit to China in July this year, China and Mongolia strengthened neighborly and friendly bilateral relations and opened a new chapter for cooperation in many fields. More than two months passed since then, how are the cooperative agreements that both side signed going on? What will the two countries do in future? Below is the interview with H.E. L. Amarsanaa, Ambassador of Mongolia to China, in which he stated the President‘s visit and introduced economic and trade cooperation between two countries recently.     

A New Economic Growth Option for China

The last decades of the 20th century have rep resented a turning point in the global development process. It is knowledge and/or technology that has changed the world's development course and has become the engine of social, economic and cultural development in every country. The role of knowledge and information in economic activity is now so great that it is inducing quite profound structural and qualitative changes in the operation of the economy and transforming the basis of comparative advantage of the countries.     

Mexico： A Golden Opportunity

Mexico is the second largest producer of silver in the world and is ranked ,among the top 12 countries in terms of production of eighteen types of minerals. It has become one of the most internationally competitive countries for mining at the same time as the sector has taken on a key role in the country＇s own economic growth. According to the report from Behre Dolbear published in 2010, Mexico was the world＇s fourth-best investment destination for mining among a 25-country-list and in first place regarding the fiscal regime. Meanwhile,     

New Phase Between China and France

In recent years, the economic cooperation between China and France has developed rapidly. In despite of the .bilateral relationship was fluctuating last year, two countries kept on making their efforts to improve the relation. The 15th China-France Economic Seminar was held on April 8 and 9, in Beijing. The theme of this seminar is Challenges and Opportunities： Beginning New Cooperation between China and France, after a statement concerning France fully recognizes ＇the importance and sensitivity of the Tibet issue＇ and that France refuses to support any form of Tibet independence issued by China and France on April 1.     

China＇s cross-border M＆A： 30% ↓ in 2008

China＇s cross-border merger and acquisition （M＆A） activities in 2008 remained active, though it dropped by 30 percent year-on-year in terms of transaction amount, according to a report released by market researcher Zero2IPO Group on January 20.     

China and India Cooperation Prevailing over Competition in the 21st Century

China and India, the two largest de veloping countries in the world, are similar in economic structure and development level, both engaged presently in the national drive of rejuvenating their countries by science and education. Their bilateral relations influence stability and prosperity of Asian and Pacific Region and the world as a whole. The article attempts to argue from various perspectives that the mutual cooperation between the two giants may prevail over the competition in the 21 st century.     

The diffusion of innovation theory and the effects of IFRS adoption by multinational corporations on capital market performance: a cross-countryanalysis

This article seeks to contribute to International Financial Reporting Standards (IFRS) literature by examining the effects of adopting IFRS on stock market performance worldwide from the diffusion of innovation theory perspective. Our study revealed several interesting findings after using combinations of unique panel data sets from 110 countries worldwide and conducting a robust empirical analysis from 1995 to 2014. First, we found a positive association between late mandatory IFRS adoption and stock market integration in Europe. Second, our findings indicate a significant negative association between early IFRS adoption and the following financial indicators: stock market trading volumes, stock market capitalization, market turnover, and market return. Third, our study reveals an insignificant association between early IFRS adoption and stock price volatility alongside stock market development. Our findings are robust and have significant practical and policy implications for regulators and policymakers of multinational corporations.     

The determinants of cross-border equity flows

We explore a new panel data set on bilateral gross cross-border equity flows between 14 countries, 1989-1996. We show that a “gravity” model explains international transactions in financial assets at least as well as goods trade transactions. Gross transaction flows depend on market size in source and destination country as well as trading costs, in which both information and the transaction technology play a role. Distance proxies some information costs, and other variables explicitly represent information transmission, an information asymmetry between domestic and foreign investors, and the efficiency of transactions. The geography of information is the main determinant of the pattern of international transactions, while there is weak support in our data for the diversification motive, once we control for the informational friction. We broaden the scope of our results by presenting some evidence linking the results on equity transactions to equity holdings.     

The Impact of IFRS Convergence on the Effectiveness of Accounting Information for Share Valuation: Evidence from the Mainland of China

This study examines whether the reconciliation amounts between IFRS and PRC GAAP provide additional incremental value-relevant information. More specifically, it investigates whether firms applying IFRS experience an increase in the quality of accounting information in the post-IFRS convergence period. Results show that IFRS convergence increases the values of balance-sheet items and enlarges variation across firms. Moreover, there is no difference in the explanatory power of value relevance of accounting information under IFRS and PRC GAAP for share prices and returns of A-shares. The incremental value relevance analysis suggests that the IFRS adjustments to earnings are value relevant, whereas the adjustments to book values are not. The IFRS adjustments to change in inventory are value relevant for predicting future operating cash flows. Finally, accounting quality improved in post-convergence period. These results are robust after controlling for the unique characteristics of Chinese firms.     

中国企业跨国并购文化整合的模式选择

随着经济全球化趋势的不断深化,跨国并购已成为中国企业迅速国际化的一条捷径。然而,跨国并购的绩效并不乐观,缺乏有效的文化整合是跨国并购失败的一个重要原因。因此,本文在Nahavandi和Malekzadeh文化整合模式的基础上,纳入国家文化差异和跨文化优势这两个因素,并结合中国企业跨国并购的特性来分析中国企业跨国并购文化整合的模式及其选择过程。     

技术获取、竞争策略与发展中国家跨国并购投资

文章着重考虑在投资主导型国际分工和全球竞争的开放经济环境下,发展中国家以提高效率、降低成本、拓展市场为目的,以技术获取为手段的跨国并购投资策略的选择。通过建立一个博弈分析模型,把发展中国家对发达国家的"资产扩展"投资和发达国家对发展中国家的"资产利用"投资以及两者之间的相互投资包容起来,形成了逻辑一致的解释。     

我国上市公司跨国并购绩效实证分析

通过选取2003-2008年的25起跨国并购事件作为样本,实证分析了我国上市公司跨国并购的绩效。研究表明我国上市公司在并购当年绩效有着显著的提高,但是在并购后的第一年和第二年绩效出现了逐渐下滑的趋势。跨国并购绩效的不稳定主要是由上市公司跨国并购能力不够导致的,应从促进行业内资本集中、实施合适的并购战略以及提高国内并购能力等几个方面入手,提高我国上市公司跨国并购的绩效。     

The Role of Geography in Financial and Economic Integration: A Comparative Analysis of Foreign Direct Investment,Trade and Portfolio Investment Flows

The objective of this paper is to examine the role of geography in explaining the patterns of financial and economic integration among both developed and developing countries. Using a gravity model, we compare North‐North, North‐South and South‐North FDI, trade and portfolio investment flows to examine how geographical factors influence these bilateral flows. The results indicate that the impact of geography variables on FDI and portfolio are similar to their effect on trade. Geography variables have a statistically significant effect both on FDI and portfolio investment, but FDI is more sensitive to distance. We interpret the negative effect of distance as the existence of information costs in financial flows. Also bilateral FDI, trade and portfolio investment flows react to macroeconomic fundamentals in the same way, however, with different degrees of sensitivity. There are significant differences between North‐North and North‐South flows. Our results find support for the argument that most FDI among industrial countries are horizontal, whereas most FDI investment in developing countries is vertical. The fact that the significance of geographical variables on financial flows still remained even after controlling for the macroeconomic fundamentals, is in contrast with the standard capital market model. The results can, however, be reconciled if geographical factors can proxy for information costs, which may in turn explain why country portfolios are still home‐biased. The significant effect of distance on financial flows may also explain how idiosyn cratic shocks are spread (i.e. contagion) to other countries in the same region. Ultimately, the geographical location of a country may determine its economic and financial integration into the world economy.     

Tensions between politico‐institutional factors and accounting regulation in a developing economy: insights from institutional theory

The study contributes to building an understanding of the impact of political forces on the information environment of listed firms in a developing economy. Specifically, it investigates the tensions between politico‐institutional factors and accounting regulation on the prolonged and incomplete implementation of the International Financial Reporting Standards (IFRS) in Bangladesh from 1998 to 2010. Two phases of interviews were conducted in 2010–2011 and IFRS‐related enforcement documents from 1998 to 2010 were evaluated. The study contributes that IFRSs are being diffused to developing countries like Bangladesh, but they invariably interact with local institutions (political institutions in this case), with variable outcomes (i.e. negative outcomes of IFRS implementation). Coercive, normative and mimetic isomorphisms are low in Bangladesh. Notably, political forces have been undermining mimetic isomorphism because of the high level of government intervention and the high level of political lobbying. Political institutional pressures stand in the way of mimetic isomorphism and constitute negative forces that add further tension to accounting regulation (e.g. the implementation of IFRS) in Bangladesh. Regarding the low level of normative isomorphism, there is evidence of a ‘blame culture’, with state institutions and professional accountancy institutions in the country blaming each other for the poor progress in IFRS implementation. Although the study focuses on Bangladesh, its results have implications for international policy makers (the International Accounting Standards Board, the International Monetary Fund and the World Bank), as well as the governments and regulators of other developing economies facing similar challenges in implementing IFRS.     

Incorporating International Accounting into the MBA Curriculum: Exploring Implications of the Financial Reporting Crisis of 2001–2009

Recent developments in the global business environment have led to important changes in accounting/auditing regulations, and have implications for the business school curriculum. While many of these issues are covered in advanced accounting courses, generally taken only by majors, the issues are sufficiently important that nonaccounting majors, at both the graduate and undergraduate level, should be aware of these issues as well. Recent developments favoring the adoption of International Financial Reporting Standards (IFRS) in the United States provide an overall compelling context for incorporating these standards into the business curriculum. The purpose of this article is to provide a road map for such incorporation.     

外资并购对中国企业产能利用率的影响

改革开放40年来,中国外资并购频繁发生,对经济增长做出了积极的贡献。然而伴随中国经济的高速发展,产能过剩问题日益凸显。本文基于1998—2007年中国企业数据,采用PSM-DID方法系统地研究了外资并购对中国企业产能利用率的影响及作用机制。实证结果表明,外资并购显著促进了企业产能利用率的提高;影响机制检验发现,出口扩张、研发创新和生产效率是外资并购提升企业产能利用率的重要途径;进一步的动态效应估计显示,外资并购后五年内对企业产能利用率具有显著的促进作用,且该效应呈"倒U型"动态变化特征。此外,本文还考察了外资并购对企业产能利用率的异质性影响,发现外资并购对内陆地区企业、高资本密集度企业和高融资约束企业产能利用率提高的促进作用更大。本文最后采用面板分位数回归方法检验了外资并购的产能利用率效应在不同产能水平企业之间的差异性,发现外资并购在更大程度上提升了落后产能企业的产能利用率。以上研究意味着,外资并购有助于缩小企业间产能利用率差距,这对于减少社会资源浪费、提高资源配置效率以及推动产业结构转型升级具有重要的作用。