Empirical Research On The Foreign Capital M&A Performance Of The Listed Company In China Based On DEA Method

According to statistics, foreign Capital M&A in Chinese stock market was few before 2002, but the data has increased much from 2003. However, by now, foreign capital M&A is still not a main way of using foreign capital in China. With Chinese capital market opening to foreign capital, we can foresee that foreign capital M&A would be a dazzling inevitably. The relevant studies on the performance of foreign capital M&A in China still lacks enough theoretical and empirical studies. This thesis does an empirical study on the foreign capital M&A performance of the listed company in China based on DEA method.The relative contents and results are as following:First, the thesis reviews the empirical methodology and main results from relevant research regarding to performance of M&A. Most of these researches follow two masterstrokes: one is market research method and the other is financial performance method. The former tests the effect of M&A on stock price while the latter exams the effect of M&A on operating performance.Then, the thesis describes the fundamental theories of M&A which include Difference Efficiency Theory, Operating Synergy Theory and Pure Diversification Theory, which are introduced to explain M&A motivation from traditional behavior angle. Then, based on these theories, we do a foreign capital M&A motivation analysis in buyers'and sellers'perspectives.In chapter four, the thesis describes the DEA model construction and improvement, and selects the list company whose foreign capital M&A happened in 2004 as samples, adopt the Data Envelopment Analysis (DEA) method as the measure to study the performance of sample companies during 2002 to 2006. The empirical test provides the evidence that foreign capital M&A would totally promote the efficiency of the listed company business management, and foreign capital M&A is profitable in promoting efficiency in the long run.