Date of Award

2006

Document Type

Dissertation

Degree Name

Master of Science in Maritime Affairs

Specialization

Integrated Coastal & Ocean Management

Campus

Shanghai, China

Country

China

First Advisor

Gang, Zhao

Abstract

In 2005, although there came along another wave of M&A activities in global shipping industry, we haven’t seen any sign of the emergence of large-scale M&As in China shipping industry so far. It’s quite unfavorable to the future development of whole China shipping sector. Besides, most Chinese shipping companies show no interest in, and even resist carrying out such economic event. However, the reasons behind the problem are various and intricate. The unique China macroenvironment and different kinds of deficiencies in Chinese shipping enterprises really hinder the appearance of mass M&A activities in China shipping industry. Here the macroenvironment includes the paradigm formed in Chinese culture, unfledged China financial market, and inappropriate conduct by China government as well as imperfect China M&A laws. They are just main categories. Each influential element that makes up the macroenvironment further encompasses several sub-items. For example, the imperfections of China direct, indirect financing channels and investment banks all constitute the inefficiency of China financial market. In order to solve such weird M&A matter in China shipping industry, some viable measures should be taken as soon as possible. Within a series of future possible reforms, the reconstructions of China financial market and relevant financial institutions would be on the top of the list. Moreover, a fair and impartial M&A law system is necessary to encourage more M&A activities happened in China shipping industry in the future, which includes Antitrust Law, M&A Law and other complementary laws. Financing innovation and capital market improvement are another important issues to resolve. Modern corporate system should be popularized among Chinese shipping enterprises so as to be compatible with new external macroenvironment. Finally, appropriate government support can guarantee that M&A activities would be carried out in an efficient and effective way, which in turn stimulate more M&As in China shipping sector.

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