The Analysis On The Performance Of M&A For China Public Companies Based On EVA

Merger & Acquisition (M&A) is a business method for corporations to achieve the maxim value from market by getting other assets'ownership or equity-control to optimize M&A firms'resource distribution. As the development of economy in our country, it has become a more and more important way for corporations to improve the innovation, quality and value of assets, operation performance and to optimize their resource distribution. However, what's the effect of M&A in China's security market? And have such companies got the excess increasing by M&A? The purpose of the investigation will be propitious to realize market-oriented and material M&A in China and to provide some suggestions for improvement in this area.The paper comprises five chapters. At first the background and train of thoughts of the research are described in the introduction which also summarizes the foreign and domestic empirical studies of relative issues. Secondly, the paper introduces the theory of M&A and the effect of M&A on the company's efficiency is analyzed based on the relative theory which provides a theoretical basis thus introduce EVA into the evaluation system for the M&A behavior in Chapter 3 for the latter research. Chapter 4, as the core of the paper, describes the development of listed companies'M&A in China, confirms the period of M&A samples chosen in the paper, and conducts an investigation into the performance of M&A using the model built on EVA. Finally, the impact of different M&A patterns and equity compositions on M&A performance is analyzed.The results of the research suggest that most of the primary acquiring companies have improved their efficiencies after M&A in a short-term period. However, improvement is not so excellent from long-term point of view, on which area the companies need to focus on more in the future. Besides, among the three M&A patterns, the vertical is most significant, that of the mixed M&A presents positive but not significant, and the parallel M&A pattern has a negative relationship with the effect of M&A, and the longer the interval of the sample gets, the more significant the relationship becomes. As a result, we need longer-period samples to verify its effect.