Study On The Listed Company Stock Exchange M&A Effect In China

Stock exchange M&A is a way of M&A, in which the main M&A company's stock replace the target company's by a certain percentage, at the same time, the target company is terminated or becomes a subsidiary of the main M&A company. Stock exchange M&A converts stock as payment.In China A-share market listed companies M&A, stock payment is being used as an important way, and also will be the main direction of development. But in the process from planed economy to market economy in China economic system, the studies on stock price effect and performance effect of stock exchange M&A is relatively little. In this paper, using the stock exchange M&A event occurred in China A-share market as samples, by reference analysis and comparative analysis, qualitative analysis and quantitative analysis, normative analysis and empirical analysis, using event study analysis, measurement model and finance indicators analysis, we carried an in-depth study on the stock price effect and performance effect.This paper is divided into five chapters, the first chapter is the introduction, describing the study background, purpose, meaning, contents, methods, papers innovation and weaknesses, briefly discussing domestic and foreign research status; in the second chapter, we analyze the factors to consider when using stock exchange M&A, analyze some theories about stock exchange M&A and M&A effect, describe the advantage and disadvantage of stock exchange M&A, and analyze the different exchange ratio calculation method, including EPS method, share price method, net assets per share method, critical exchange ratio in condition of no diluted EPS and the L-G model; in the third chapter, we study the stock price effect of stock exchange M&A, at the same time, we classify the sample companies based on different criteria and carry a comparative analysis of different types; in the fourth chapter, we study the performance effect of stock exchange M&A and carry a comparative analysis of different types; in the fifth chapter, combined with the economic policy in life, we propose a number of suggestions on how to increase the stock exchange M&A effect.In this paper, by calculating and testing CAR and financial indicators with the help of SPSS and EXCEL software, we found:for the stock price effect, stock exchange M&A can really bring a positive effect for the shareholders, and the ST listed companies'is more significant than the non-ST's, the absorption combined listed companies'is more significant than the backdoor's, the Shenzhen listed companies'is more significant than the Shanghai's, and the listed companies' after split share structure reform is more significant than the listed companies' before split share structure reform; for performance effect, the stock exchange M&A will help the profitability of listed companies' main business and EPS increase, but the increasing of efficient use of own funds is not significant, and for backdoor listed companies, the stock exchange M&A help the profitability of listed companies' main business, EPS and ROE increase higher than absorption combined listed companies, for Shenzhen listed companies, the stock exchange M&A help the profitability of listed companies'main business, EPS and ROE increase higher than Shanghai listed companies.