Financial Risk Control and Avoidance Measures in Enterprises Mergers and Acquisitions

Abstract

there has been a wave of mergers and acquisitions in all industries as a result of the continuous development of the market economy, the fiercer competition among countries and industries as well as the constant increase of concentration of industries. Mergers and acquisitions can reduce transaction costs for the implementing subjects, bring scale benefits to the mergers and acquisitions subjects to quickly enter into emerging industries, improve their competitive advantages through the integration of assets and their operating performance after mergers and acquisitions together with financial risks. Based on the current research background and relevant theories, this paper analyzes the motivation, financial risks and other relevant theories of mergers and acquisitions, summarizes the financial risks of mergers and acquisitions, specifically analyzes the financing risks, payment risks, financial integration risks and influencing factors of mergers and acquisitions, and takes GEELY's acquisition of Volvo group as an example to analyze the financial risks of mergers and acquisitions, and finally puts forward corresponding suggestions on the prevention and control of financial risks of mergers and acquisitions.

Employees’ responses to psychological contract breach: The mediating role of organizational cynicism

“…M&A strategies bring transformational changes in organizational structure, scope, and employees’ behavior (Bellou, 2008). Therefore, prior to M&A deals, senior management make numerous commitments and develop a perception of positive career growth (such as promotions, handsome increments, and recognition in the organization) to motivate their employees (Liu, 2019). The positive perception from both sides (employer and employees) develops a positive mutual commitment which is called a psychological contract (PC) (Rousseau, 1989; Zhang et al, 2018).…”