Empirical analysis on choice of payment terms in foreign capital acquiring state-owned enterprise

Abstract

With the development of economic globalization foreign acquisition has become the important method of international direct investment. In order to adapt international tendency of multinational corporation investment China adjusts foreign capital policy gradually and the form of using foreign capital is changing from traditional ways of joint venture and cooperation to using multinational acquisition. Combining the further reform of state-owned enterprise China established laws and regulations as to foreign capital acquisition, in which includes the regulations of foreign capital acquiring state-owned enterprise. So on the basis of development progress of Chinese foreign capital acquiring state-owned enterprise studying on change of legal surrounding and choice of payment terms in foreign capital acquiring state-owned enterprise has the vital meaning. By studying on legal surrounding in foreign capital acquiring state-owned enterprise the article analyzes the payment terms and give some workable suggestions to faults in payment terms in splitting off stock in foreign capital acquiring state-owned enterprise in Corporation Law and Security Law. © 2012 Springer Science+Business Media B.V.