TheStudyofFinancialRiskinM&A（并购的财务风险研究）-外文翻译

activities, and enjoy the decision-making power on a major event involved in the whole enterprise; implementing the structure of the M & A Adjust, the allocation of resources, a significant investment, technology development and other major decision-making to the budget of the corporate mergers and acquisitions, monitoring and controlling various types of the budget implementation, and audit its financial reporting; being responsible for personnel management business of their own financial accounting; reporting the M & A’s assets operation and financial position on a regular basis. At the same time, when the acquisition is completed, financial institutions and the functions should be improved according to the specific circumstances of their organizations, including financial accounting systems, internal control systems, investment and financing system to make it more responsive to the needs of both mergers and acquisitions, and to establish a unified Financial information platform, so that management can be faster, more accurate and more comprehensive access to all types of financial information in order to meet the needs of decision-making.

2.4.2 Integration of financial management

Financial management objective is the starting point and end point of financial working, its determination directly impact on the theory of the financial system, and will determine the choice of a variety of financial decision-making. Upon completion of mergers and acquisitions, firms should make a clear objective of financial management based on the financial side of target firms. 2.4.3 Integration of asset and liabilities

In M & A business, debt of bidders may increase because of taking over the acquisition's debt, or adopt financial method just as loans and bonds issue. If capital structure is irrational, and financial situation also become deterioration. So the balance of integration aiming at improving the financial situation and enhance the solvency of enterprises.

2.4.4To enhance the risk awareness of management of enterprise, establish and improve financial risk prediction and monitoring system.

To raise the risk awareness of management of the business will guard against financial risks of mergers and acquisitions from the source. In addition, establish its own enterprise financial risk prevention and control system within the enterprise, to strengthen business-to-risk M & A forecast is one of the key areas of the establishment of early warning mechanism for risk prevention system.

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Conclusion

To sum up，M & A business as a better way with the unique advantages of the expansion of the scale, rapid market strategy, the socio-economic restructuring and resources optimization to become a topic of concern, the financial risk arising from the merger is also a deep wide range of people discussion of the field. As the market matures, I think M & A activity will be more thoroughly researched on mergers and acquisitions of financial risk issues will be further deepened, to achieve a real and practical application of theory to guide practice. References

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[2] Bin, Jacob Y., and Joshua Ronen. (1978). The Smoothing of Income Numbers: Some Empirical Evidence on Systematic Differences among Management controlled and Owner-controlled Firms. Accounting, Organizations and Society, 3:141-157. [3]Chen, A. H., and Kim. E. H. (1979). Theories of Corporate Debt Policy: A Synthesis. Journal of Finance, pp. 371-384.

[4]Jensen, Michael C., and Richard S. Ruback. (1983). The Market for Corporate Control: The Scientist Evidence. Journal of Financial Economics, 2:5-50.

[5]Lee, L. W. (1977). Co-insurance and Conglomerate Merger. Journal of Finance, pp. 1527- 1538.

[6]W. Y. Lee, and H. H. Barker. (1977). Bankruptcy Costs and the Firm's Optimal Debt Capacity: A Positive Theory of Capital Structure. South Economic Journal, pp. 1453-1465.

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