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Due diligence issues in China
Author(s) -
McGee Jo Ann,
Byington J. Ralph
Publication year - 2008
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20463
Subject(s) - due diligence , multinational corporation , china , diligence , business , face (sociological concept) , investment (military) , mergers and acquisitions , finance , political science , law , politics , sociology , psychology , social psychology , social science
The People's Republic of China was identified as one of the most attractive locations for anticipated mergers and acquisitions (M&As) over the next 18 months. Unfortunately, it is also considered to be one of the riskiest locations for investment—partly due to the growth of white‐collar crime (WCC). So any multinational firm planning M&A activities in China should include a search for WCC in their due diligence. However, conducting due diligence in China is very difficult. The authors take a critical look at these issues and detail the challenges that multinational firms will face. They also give some practical advice on how to handle those problems. © 2009 Wiley Periodicals, Inc.