Listed Companies In China M & A Motives And Long-term Performance Studies

Merge and Acquisition (M&A) is a permanent hot topic in the development of security market in developed countries. Western developed countries have been through five M&A tides. Generally speaking, each of the tides happened in economic transformation periods. As China is now being in a dramatic transformation period, M&A keep emerging in the stock market, whose function of reallocating resources has increasingly presented itself. The successful M&A would considerably promote the development of enterprises and macro-economy, however, there are many unsuccessful cases in practical M&A. Therefore, it became realistic problems that how enterprises rapidly grow and develop using M&A and how the government guides and supervise M&A. The theory circle has generally focused the study of M&A on two aspects: motivation and valuation. Based on this, this thesis will study the M&A theory of China's enterprises and the long-term valuation under China's specific institutional environment, with the purpose of providing recommendations for concerning departments to make appropriate legal regulations, increasing the M&A valuation of China's enterprises.This thesis consists of 5 sections, its main contents are as follows:Section 1 is the introduction. In this section, the general study thinking and direction is introduced, including the study motivation, study method and content, as well as the innovation and potential direction for further study.Section 2 provides systematic analysis and introduction of M&A motivation theory. The traditional foreign M&A motivation theory is specified in this section, then a profound analysis of M&A motivation of China's listed companies is provided.Section 3 is about literature review of M&A valuation. In this section, domestic and foreign study literature about long-term wealth effect is reviewed. First, the event analysis method for calculating M&A valuation is introduced; then a detailed review of domestic and foreign study literature concerning the long-term capital market valuation of M&A is given; third, in the discussion of relevant literature, some weaknesses of China's M&A valuation study field are found, thus the study direction of this thesis is made.Section 4 provides measurement of long-term capital market valuation and analysis of relevant affecting factors. Using foreign normative long-term event study method—BEAR, this writer assesses the wealth changes of long-term shareholders in acquiring companies in 1-3 years after M&A, analyzing influences of M&A type, trans-industry nature, state-owned shareholding and majority shareholders controlling upon long-term capital market valuation of M&A, as well as validating the minority motivation theory.Section 5 provides conclusions and policy suggestions. On the basis of above theoretical and practical analysis results, some policy suggestions to promote the healthy development of Chinese enterprises M&A is given, and limitation of this thesis is pointed out.