Study On Performance Of M&A Of State-owned Listed Companies

Since two security markets of Shenzhen and Shanghai in China have been run in succession at the beginning of the 1990s,the M&A of the listed companies becomes the common phenomenon on the security market day by day. It has important theoretical meaning and realistic meaning to study performance of M&A of the listed companies. On the basis of drawing lessons from the existing research results both at home and abroad, this paper observes the change law of the two financial indexes of NROA and CROA from 1997 to 2001, studies the relations between the locations of listed companies and the M&A performance, between the structure of equity of listed companies and the M&A performance, between the industry nature of the listed companies and the M&A performance, between the type of M&A and the M&A performance, and then draws several conclusions that M&A performance is unsatisfactory on the whole, M&A performance of listed companies in eastern China is superior to that of the counterpart in middle or western China , M&A performance of listed companies that the country or the other corporations hold the most share of the listed companies is unsatisfactory on the whole, the growing or mature listed companies can achieve best M&A performance when they implement the M&A horizontally while the listed companies in declining phase may perform the conglomerate M&A the best. This paper briefly analyses its origin cause of formation and puts forward several policy recommendations.