Mergers & Acquisitions vs. New Construction; Research on the Applicability Boundary of Corporate Mergers and New Construction Investments

Author: Chen Yunhua
Publisher:
Publish Date: 2007-02-02
Features: The growth of a company is achieved through two pathways: internal growth and external growth. New ventures and mergers are not only the most representative methods of these pathways but also the most common types of investment decisions. Mergers & Acquisitions vs. New Ventures applies Resource-Based Theory, the Monopolistic Advantage Theory from International Investment Theory, the Life Cycle Theory, and the International Production Theory to systematically study the mechanisms influencing the choice between mergers and new ventures. It also pioneers the analysis of eight significant factors correlated with corporate investment methods: market growth rate, market competition level, company size, strategic resources, business experience, management level, cultural differences, and corporate strategy types. This reveals the general patterns of mergers and new ventures investment activities, establishes a mathematical model for studying corporate mergers and new ventures investments, and provides certain guidance value for corporate investment decisions in mergers and new ventures.