M & A Performance Of Chinese Listed Companies Based On Bounded Rationality Perspective, Empirical Research

Listed companies are the cornerstone of the capital market, and the overall quality of listed companies in capital markets is directly related to the attractiveness and competitiveness , and it is also the key to achieving sustainable development of the capital market. Relying on the Merger and Acquisition of the capital market is the only way to enlarge and strengthen enterprises. Besides, it is not only an effective way to achieve industrial upgrading and technical innovation, but also the most effective measure to improve the overall quality of listed companies. Therefore, it is so important to study the new situation and problems which may appear during the merger and reorganization in full circulation that regulatory response can be made timely.In this paper, Event-Study Methodology of the performance got during the merger of Chinese securities market is made by using a rule, which is on condition that rational people are limited. At the same time the study method is given up , in which investors are supposed as "rational persons". In view of the actual situation of Chinese securities market, Event-Study Methodology is introduced, which is based on the premise that rational people are limited. In this case the achievement in the merger and reorganization of Chinese stock market can be tested better.This paper is based on the idea that the investors will gradually correct their previous wrong expectation after the limited rational expectation, not the accurate expectation that was made only once by the former people. As a result, another important assumption is brought in in this paper - As time goes on , investors will continue to amend the previous incorrect expectation . So the conclusion is made that is the "M& A Performance = limited rational expectations + amended expectations."The results show that the shareholders of the studied companies receive a significant increase in wealth, but the wealth comes mainly from the integration period for one year after the acquisition; on the other hand, there is a sign that the wealth of the reorganized companies' shareholders has been lost seriously. What's more, it has verified the conditional assumption of this article: The Chinese stock market really does not reach the semi-strong efficiency.