Mergers And Acquisitions Of Listed Companies And Its International Competitiveness

M&A has always been a hot topic in the capital market. In the face of the impact of foreign competitors and the need to accelerate industrial upgrading and other combined effect of various factors, domestic enterprises accelerate the pace of M&A in order to enhance their international competitiveness. In this paper, according to the shortage that most previous literatures only studied the M&A's influence on one or several deciding factors of the international competitiveness, we explore the M&A's effect on the improvement of the international competitiveness of enterprises as a whole,and we also research which transaction characteristics of M & A can affect the improvement of international competitiveness of enterprises .We expect to make some useful suggestions on how to improve the international competitiveness effectively and to avoid the loss of international competitiveness in the future.In this paper, we first reviews the relevant literature about the international competitiveness of enterprises and the effect of M&A on the international competitiveness of enterprises, for finding the entry point for this study;secondly, we theoretically analysis the impact of M&A on the international competitiveness of enterprises using economics, management and financial theory; Thirdly,using the SAC's report on corporate international competitiveness evaluation model we evaluate the international competitiveness of enterprises and empirical analysis of the impact of M&A on it;Fourthly,on the basis of the theoretical analysis for M&A Transactional Characters, we proposed some assumptions on the enhance of the international competitiveness of enterprises. Using a sample of 2002-2006 listed companies in Shanghai and Shenzhen, we first used the principal components method to evaluate the international competitiveness of enterprises, and then used the non-parametric test the impact of M&A on international competitiveness of enterprises, finally we used the linear regression model to research the effect of corporate features and characteristics of M&A to enhance the international competitiveness of enterprises, and we found that: (1) M&A can improve international competitiveness of enterprises on the overall, but needing a process. M&A's impact on the international competitiveness of enterprises goes a improved - down - and then increased path in the first year and 1-3 years after the M&A, but overall M&A improve the international competitiveness of enterprises. (2)Related,non-related transactions and trans-regional M&A enhance the impact of M&A of international competitiveness. Related M&A's scale effect and synergistic improve the international competitiveness of enterprises, non-related transactions avoid the non-market factors'damage on the international competitiveness of enterprises, trans-regional M&A makes resource allocation and economies of scale easier to improve the international competitiveness of enterprises. (3)Payment of the M&A has no significant role on international competitiveness. The reform of listing non-tradable shares of listed companies in China's capital market started in 2006, so, many M&A's payment before this were cash, we need to get more data to do further study. (4) The negative effect of the government control and the positive effect of the good corporate governance Government control reduce M&A's enhance on the international competitiveness. Government control just improved the company's financial indicators in the short-term, not really enhanceing their international competitiveness. Good corporate governance has positive role on international competitiveness. Major shareholders play a "monitoring effect", reducing the company's first equity agency costs and block holders also fully played an active role to reduce the cost of the second equity agency costs, therefore enhancing the international competitiveness of enterprises. Management ability enhances the impact of M&A of international competitiveness.