Analysis On Effects Of Listed Companies' Mergers And Acquisitions

With the perfection of gradual capital establishment of china's market and the market, Mergers capital and Acquisitions economy have become the important means of enterprises and Acquisitions case of our operation. Since the first Mergers stock market in 1993, the amount of listed companies Mergers and Acquisitions cases has been increasing and its scale has been expanding very fast. These caused scholars began to examine M&A's effect with great interest. Presently, most of them agree that the objective corporations could benefit from M&A. However, whether or not M &A activity is good to acquiring corporation, it is still in question.Beginning with the concept of corporate financial-corporate value, using the conception and method of economic added value, this paper analyzed whether or not M&A activities add acquiring corporate value on the base of demonstration. The results showed that most of the effects of M&A are not obvious, especially vertical combinations and conglomerate combinations.To find the reason, and for the future practice of other M&A, in this paper, using the discounted cash flow (DCF) analysis of effects of M&A , then we found :when the stockholders hold different motivations in M&A,and then different references and anticipation of post-merger operation, the apportionment schedule of post-merger output may intensify the existing agency problems and organization conflicts, and the transaction cost brought may submerge the value added by efficiency improvement in production. At last, reconstruction and integration as an effective measure was proposed.