A Study Of Merger And Acquisition Of Listed Companies

Before the 1930s,study of M & A activitie is already begun.So far, capital market in China for more than ten years of history, M & A activities as an important means for listed companies for their own development and growth,has made speedy development in this period. With the behavioral finance theory gradually matured, many scholars starting to focus on the personal characteristics and psychological factors of executives on the acquisition of performance and risk, when they research the impact of capital efficiency to M & A activities. Since the late 1980s,more and more economic literature attempting to associat with the investment decisions to the behavior and motivation of corporate executives. In the process, cognitive psychology on the individual beliefs, judgments and desicion-making concept of gradual integration into the financial framework, overconfidence theory, hubris and other areas of psycholopy, which has become an important instrument applied in financial markets research. Several studies conclude that mergers and acquisitions of listed companies in China is ineffcient, executives of listed companies who is overconfidence and blind-expansion are remain possibilities.The basic task of this article, is to use overconfidence theoretica to reslove how the overconfidence of executives in decision-making and the effect of M & A within the framework of the behavioral finance. Based on this research aims,this paper begins from the M & A theory of narrative, regrading M & A activities of listed companies as the research subject, and surrounds overconfidence theory and its application in financial research to study, attempts to use model analysis and empirical test to advertise overconfidence effect on the performance of M&A,and finally proposed the solutions according to the actual situation in China.