What Affects The Performance Of The Acquiring Firms? Evidence From China's Publicly Listed Firms

Mergers and acquisitions occurred between 2000 and 2003 are studied in my paper, mainly including M & A performance and these factors which influence M&A performance. At first, I studied the Cumulated Average Abnormal Return (CAR) of mergers within the event window under the method of event study, and took CAR as the index of M & A performance. On the basis of results of CAR, we took CAR as dependent variable, and chose the relative scale of target company and mergers, proportion of state-owned securities, payment method, premium, industry as well as variable of mergers' scale as explanatory variables, trying to explain the variability of mergers' performance.It is found that mergers didn't get any abnormal return, and CAR is negative remarkably, it displays that shareholders of mergers didn't got any profit as a whole. After the multiple- -variable regression analysis of relative scale, proportion of state-owned securities, payment method, premium industry and scale variability of mergers, we found that the variable of relative scale has remarkably negative influence to CAR, the variable of state-owned shares proportion and payment method displayed positive influence, meantime, the other three verities didn't display remarkable effect to CAR.At last, we analyzed and explained the results according to related theories on the research of M&A performance and influencing factors of listed companies, and provided with some related suggestions.