The Empirical Research For The Relationship Between Merger And Performance For Private Listed Companies In China

Private listed company has played a very important role in our society. We have already had 410 Private listed companies in 2007 in China, 33 ones more than which in 2006. The amount and the value of the M&A of Chinese private listed company have both increased more significantly than before. So the research for M&A of private listed company becomes meaningful. We divide the paper into five chapters. Chapter one and two identifies the content and focus of the paper. Chapter three analyses the reasons for M&A of Private listed company in China. Chapter four discusses the methods of Empirical research for the relationship between merger and performance. The fifth chapter is the most important chapter in the paper, which focus on the empirical research for the M&A performance of Chinese private listed company. According to the data of mergers and acquisitions of Shanghai and Shenzhen stock exchange in 2003 and 2004 in CSMAR database, the author selected 69 samples. According to the financial data for the period from 2002 to 2005, which are out of CCFR database, the author calculated 15 ratios to perform data analysis, and further more, explained the relationship between merger and performance considering the feature of different industries. The innovations are as follows: the author focuses on private listed company in China, and bring forwards the feature of different industries to explain the relationship between merger and performance. The conclusion is that in real estate industry, wholesales and retails industry, beverage product manufacturing industry, and pharmaceutical industry, mergers and acquisitions could increase the performance of private listed company in China, while in the textile industry, machinery manufacturing industry, and information dissemination service industry, mergers and acquisitions could not increase the performance of private listed company.