In this paper, we review the intemational M&A motivation and M&Aperformance theory. On the base of the review, we summarize five main factors whichinfluence the performance of M&A by foreign capital then bring forward somerelevant hypotheses.In empirical research part, we try to collect the stylebooks of M&A of listedcorporation by foreign capital which happened from 1995 to the end of 2003. In orderto research performance of M&A of listed corporation by foreign capital andmeanwhile verifying or modifying the hypotheses, we apply the model of dateenvelopment analysis (DEA), Nonpararnetric Test, One-way ANOVA and case studymethodology to analyze operation performance of listed corporation and theperformance of M&A by foreign capital.The results of empirical research reveal us five main conclusions:first, M&A oflisted corporation by foreign capital can improve operation performance of listedcorporation; second, M&A of listed corporation by foreign capital can improveoperation performance of listed corporation in manufacture industry obviously; third,M&A Performance of foreign capital in the pattern of private placement are better than M&APerformance of foreign capital in the pattern of buy-out shares; fourth, the industrycorrelation between foreign corporation and domestic corporation has positive correlation with Performance of M&A by foreign capital; Fifth, M&A Performance offoreign capital which have dominate role in listed corporation are no more than M&APerformance of other foreign capital which don't have dominate role in listedcorporation.In the end, according to research conclusion, we provide some valuable referenceand suggestion to the government and listed corporations. |