THE INFLUENCE OF CROSS-BORDER MERGERS AND ACQUISITIONS AND FINANCIAL CRISIS ON INDUSTRIAL CAPITAL INFLOW - THE CASE OF THE UNITED STATES ACQUISITION IN CHINA

You-Syun Huang

Department of Finance, Tainan University of Technology, Tainan, Taiwan This email address is being protected from spambots. You need JavaScript enabled to view it.

Yi-Chou Wang*

Department of International Business Management, Tainan University of Technology, Tainan, Taiwan

*Correspondence: This email address is being protected from spambots. You need JavaScript enabled to view it.; Tel.:886-6-2422609

Abstract

This research reviews the 1997 Asian financial crisis and 2008 financial crisis, which have deeply traumatized the global financial system. It has not recovered for more than ten years. Cross-border mergers and acquisitions is the major form of FDI to gain strength. Financial Crisis of 2007 is an unprecedented in the history and the beginning was sub-prime mortgage crisis in the United States. The financial crises swept the world. The results illustrated that the financial crisis diminished mergers and acquisitions (M&A) capital flow from the US to China. Even a country with institutions as perfect as the US cannot avoid suffering losses to the finances and economy. Therefore, the global financial market should not over-expand credit, over speculate and seek personal gain.

Keywords: Financial & Industrial Structure, Mergers & Acquisitions, Financial Crisis

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