Research On Efficiency Appraisement And System Optimization Of Mergers & Acquisitions Of Listed Companies In China

At present the M&A is a hot topic of China’s capital market.It can help to improve the quality and core competitiveness of listed companies and can help to get more and more outstanding and stronger under the intense market competition environment. From a macro point of view, the M&A is an important and effective way to achieve a more optimal allocation of resources and promote the optimization and upgrading of industrial structure and stimulate sustained economic growth.Started from 2002, after joining World Trade Organization China began to establish a true market-based era of mergers and acquisitions.After entering the entire circulation time, China’s M&A presents the quite obvious new characteristic. Wang Wei, President of China Mergers and Acquisitions Association pointed out that with China’s foreign exchange reserves reaching new heights, the M&A scale is unprecedented which causes by the fluidity surplus and the transnational circulation of capital and the foreign capital M&A is blustery. Regardless of the transaction amount or quantity, it has achieved an unprecedented altitude. At the same time, the Chinese enterprises step up the transnational M&A.The separatist M&A regime of the western Developed country in china now has also started to interactive two-way wave of M&A.The M&A scope of Chinese Enterprise expands unceasingly:From State-owned business to Private enterprise, from the industrial to the capital, from energy resources to high and new technology, from traditional industries to the financial sector and so on. The Chinese M&A market has already entered a new era of Marketization and internationalization.Then,how is now the M&A efficiency? Has it improved quality and efficiency of listed companies? Has it improved the efficiency of resource allocation.The sound M&A system environment is the basic guarantee which helps to improve the efficiency of M&A.Then during the transition period, how is now the system construction process of M&A market? Whether does the marketability M&A system environment form? In order to improve the M&A efficiency, How does the existing merger and acquisition system optimize in next step deepened reform? Therefore, this paper focuses on the M&A efficiency and system optimization problem, which is the subject of this paper. This article has systematically studied the M&A efficiency of listed companies and analyzed the macro-micro M&A efficiency of listed companies completely thoroughly.lt focused on the M&A system and the government intervention on the impact of M&A efficiency and proposed the M&A system optimization plan with the M&A marketability tendency.At first it uses the method of Normative analysis to build the theoretical analysis frame;Then it uses the method of historical analysis and comparative analysis to study the Chinese and foreign M&A course and the system evolution course. Next it uses the empirical methods and the principle of equilibrium analysis to study the M&A macro-micro efficiency and it uses the game theory principle to analyze the M&A efficiency improvement condition in the full circulation time. Then it uses the normative analysis to analyze system factor on the impact of the M&A efficiency. Finally based on efficiency judgment and M&A system vicissitude experience of western developed country and combined with the actual situation of China’s M&A, from the new institutional economics perspective it Proposes the M&A system’s reform path and the system optimization strategy of china’s listed companies during the transition period.Although microscopically speaking, the M&A will help the listed companies to improve the quality and core competitiveness and get more Outstanding and stronger;Looking macroscopically the M&A is an important and effective way to achieve a more optimal allocation of resources and promote the optimization and upgrading of industrial structure and stimulate sustained economic growth, unfortunately it found:At present the M&A microscopic efficiency of listed companies improves just a little and the macroscopic efficiency is too limited, so it has not realized the resource allocation function.It lies in various reasons and the main reason is that the M&A marketability advancement is too slow and the government intervention is too much and the M&A system construction also lag in the M&A practice development. The current M&A system can not effectively promote the M&A efficiency and the M&A marketability. In order to promote the M&A marketability and improve the M&A efficiency we must build quickly a set of perfect M&A system such as M&A Legal System, reporting system,financing system, information disclosure system, monitoring system, limited government system and property system and so on. This paper put forward the merger and acquisition main system’s optimized strategy systematically,and simultaneously further proposed some auxiliary institutional innovations plan such as Shareholder’s Representative Action, Qualified investor system, Operator incentive and restraint mechanisms etc.so it helps to create the sunlight M&A system environment From the institutional environment and M&A body restrain and helps to build the innovative institutional arrangements for M&A and reorganization of listed companies.It largely improves the M&A efficiency and resource allocation efficiency. Compared to existing studies, this paper has the following innovative:First, innovation in research methods:(a)This paper studied empirically the M&A efficiency systematically. The efficiency of the M&A is divided into micro-efficiency and macro-efficiency. In micro-efficiency it is divided into the M&A transaction efficiency and integration efficiency and synergy effection. In transaction efficiency aspect it studied empirically the following type:the Asset-based M& A, the equity-based M&A and the debt restructuring M&A; the same jurisdictional and non-jurisdictional M&A; the associated and non-associated the;different industries and different regions M&A,and also empirically analysis the factors affecting the M&A micro-efficiency.At the same time it analyzes empirically the factor of integration efficiency and focuses on government intervention,agency costs on the impact of M&A integration performance. In macroscopic efficiency it analyzes the efficiency of resources allocation and industrial structure optimization efficiency. Therefore this paper has carried on the multi-position system empirical analysis to the M&A efficiency and has fully revealed the improvement condition of M&A efficiency as well as the loss condition of M&A efficiency.(b)This paper has analyzed the M&A institution on the impact of M&A efficiency from the view of new institutional economics and M&A system flaw condition. Learning from international experience and combining with the transition process of China’s M&A market,it has proposed the next step of the path of reform and system optimization countermeasure.Second, innovation in the point of view:(a)It finds empirically:Different profession and economic region have different M&A efficiency. Looking from the M&A tendency, in the profession the M&A speeds up and the M&A profession is quite centralized. The cross profession M&A is advantageous to the resources conformity and the M&A shifts to the high efficiency profession. The individual popular profession’s M&A efficiency must be higher than other professions.The merger and acquisition concentrates in the information industries, the biological medicine, the real estate, the social service, the energy electric power, professions and so on. Its M&A frequency is relatively high.. Explained that in these professions the high rhythm and the capital operation’s function is prominent, the resources is easy to conform, easy to have the scale effect and the cooperative effect, thus its M&A efficiency must be high relatively, and becomes the present hot M&A market. There are different M&A efficiency among different economic region and the region distribution is quite centralized. M&A mostly concentrates in southeast coast economy developed area which are the economical developed area and have resources talent condition.(b)It finds empirically:M&A conformity efficiency has many factor influences, after the M&A, different period’s conformity efficiency is restrained by the different key aspect. different period’s conformity has the different conformity key and the difficulty.the conformity must distinguish clearly primary and secondary, proceeds in an orderly way. In the M&A agency cost obviously cut the M&A conformity efficiency, but the listed companies of state-owned and the privately lies in difference. The government intervention is the important factor in M&A. the government supports or plunders its enterprise stemming from the policy-type burden either the political objective through the merger and acquisition activity. In the switch time, the merger and acquisition activity has not had completely in the marketability situation and the M&A conformity efficiency of strong state-owned and social holding is lower than the private enterprise. government intervention is not conducive to M & A integration efficiency.(c) It finds empirically:in our country the M&A market’s resources-allocation function has not displayed fully and it explained that the M&A behavior and motive has multiplicity, so the massive M&A efficiency is very low and causes the resources allocative efficiency is still not high in China.In industrial effect aspect.The overall effect of mergers and acquisitions industry had improved little and the industry effects of mergers and acquisitions are still limited, has not yet been obtained effectively. Further structural analysis revealed a significant prevalence of Chinese enterprises of industry differences,and the listed companies tend to shifts from the industry of lower industrial effect to higher industrial effect, thus realizes the industrial structure optimization through the merger and acquisition method.The attractive and growing High-tech industries have become the focus of mixed M&A,whereas the textiles and clothing, the metallurgy, the heavy manufacturing, the traditional commercial, the building materials and so on gradually shift to the emerging industrial sectors because they lack the attraction and the growth potential.The industrial effect of innovative industries is higher than the non-innovative industries and its M&A efficiency is also higher.(d) It Proposes further policy to optimize our country M&A declaration system’s countermeasure:Suitable enhancement declaration standard, implementation difference treatment strategy; Retained the present compulsion to report the system in anticipation, the addition voluntary declaration and sets up a file afterward the system; Formulates the counter-monopoly examination operation sequence and the merger and acquisition rule as soon as possible, strengthens "Antimonopoly law" feasibility.