The Empirical Analysis Of Listed Companies In China M & A Value Creation

Currently, the security market has become an important place for resource allocation optimization. M&A of listed company is featured with large scale, strong social effects and involves large transference of human resource, material resource and financial resource. Many companies tend to use profits or EPS to measure the success of M&A. But the EPS analysis does not touch on the core of the wealth exchange, because it just considered the devotion to the accounting profit.The author studies 152 acquisitions at security market of China in 2001.The paper is trying to use a new performance evaluating index——EVA to study the M&A of the listed companies in China. Through the empirical research on the problem, we can come to the conclusions that:(1)Taking the 152 acquisitions as a whole, we find that the performance of those acquisitions have created the wealth for the target companies. The M&A year, average EVA of 152 firms decreased a lot compared with that before the acquisition. But in the following two years, the performance improved when compared with the M&A year. From this, we can see the importance of merger activities.(2)Before the M&A ,the performance of target companies was worse than the average level of the listed companies in china obviously, but after the M&A ,the performance melioration of target companies was higher than the average level.(3)In all the types of M&A, the performance of share acquisitions was better than the average level of target companies. (4)The short-term effect of M&A was notable, that is, the performance of target companies had been improved in one year after the M&A.The thesis also analyses the reason for the phenomenon. We can confer that the wealth is created by the realization of the reciprocal...