The Research On Large Shareholder Control To M&A Performance

Although mergers and acquisitions of listed companies in China started late, the development of it was rapid, due to the particularity of the system background,M&A of listed companies in China have some features that not belong to developed-country markets,and the influence of acquisition'performance from the first major shareholders of listed companies has been one of the concerns in economic circles. In addition, on April 29,2005 China Securities Regulatory Commission has announced the beginning of share structure reform, this marked China into the era of post-split share. Under the circulation system,Chinses capital market has different characteristics from the past to study this period of large shareholders on the performance of M&A has a practical significance.This paper analysis the M&A of the listed company in 2006-2009,by using daily abnormal returns,accumulated abnormal returns of event study to measurement and analysis short-term performance of the amount in the short term. Then this paper used ten indicators which can reflect compannies" financial benefits,assets operating conditions,the solvency status of situation and development capacity,by using the factor analysis to discripte performance overally. In order to analysis before and after of M&A the company operating performance differences,and analysis the affect of different factors.to test the big shareholders how to effect performance of M&A. On the comparison and analysis of the difference between before and after the of reform of non-tradable shares,to test this reform how to effect performance of M&A.The study shows:mergers and acquisitions has a certain market effect in short tenn;but the acquisition performance movement show first rise and then decreased roughly in long term, one year after the merger, some sample companies even appear wealth loss.On this basis, we establish a model to analyze the proportion of largest shareholder,equity properties,the equity and balance degree,whether it occure transfer of control right and M&A payment how to affect corporate performance.lt shows that the proportion of the largest shareholder,the equity and balance degree and ransfer of control right with acquisition performance manifest positive relate; and M&Apayment method can be used as a signal of performance. Group regression shows that, the relation is nonlinear between the proportion of the largest shareholder and M&A performance, The acquisition performance of non-state-owned shares is superior to state-owned company, equity balance degree can better reflect its governance role in the highly fragmented or highly centralized governance; Those companies which with highly dispersed or highly balance control access to the control power are more favorable corporate performance improvement;Stock payment in relative concentration,non-state-owned nature,get control power conductive to the improvement of performance. results of share structure reform show that, reform of non-tradable shares perfected the listed's companies equity structure and facilitated to improve the acquisition performance.