China's Listed Companies Merger Synergies Of The Empirical Research Analysis

Mergers and acquisitions is of great significance for the enterprises. M&A is one of important ways to develop by leaps and bounds and adjust the industrial structure. M&A is not only the behavior of the corporate property transactions and assets restructuring, but also the optimal allocation of resources and capital, it is the product of the market economy. We have experienced five major M&A wave all over the world in history, almost every wave of M&A took place because of the turbulent chaos economic and financial environment. Now our enterprises are in a similar period, they are facing with both internal and external difficulties, the internal contains industrial upgrading, insufficient domestic demand, labor costs rise and difficulties in financing; the external includes skyrocketing the raw materials price, weak external demand, Europe's debt crisis and exchange rate risk. I believe that M&A will be one of the successful solutions for our enterprises to deal with the plight.M&A's main motivation is to obtain synergy and make the shareholders profit maximized. The synergy has both positive and negative effect, but only positive synergy makes M&A meaningful and successful. Actually in the real M&A activities, some companies get the positive synergy, some companies get zero synergy, and the others get negative synergy. Why these happy? I think the main reason is that the enterprises do not have a deep understanding of the concept of synergy. They are lack of appropriate theories to guide. The synergy is not only the main motivation for M&A, but also a key factor to judge whether the M&A is successful. Therefore, before we make the decisions, we need to have enough recognition, judgment and evaluation for the synergy that we expect to obtain. These measures may effectively improve the efficiency of Enterprises M&A, and help the companies to achieve strategic goals.This paper introduces the theory and practice of M&A synergy in detail, and Verifies whether Chinese listed companies obtain the M&A synergy by making empirical researches. The result is that our companies generally get the M&A synergy. This paper also studies the factors that affect the synergy. The paper is composed of five chapters. Chapter1is an introduction, presents the background, the significance of the study for the topics and the domestic and foreign research status. Meanwhile, it also gets a simple description of the research ideas, methods, contents, and framework. Chapter2introduces and reviews the related theory of the M&A synergy. The main sections of this paper are chapter3and chapter4. Chapter3firstly proposes the main method to calculate the synergy, which is the accounting indicators and factor analysis, then raises the basic assumptions of this paper, selects the listed companies in China which have occurred M&A events between2008and2009, uses these companies financial data from2007to2010as research samples, statistics and analysis of relevant data, finally, use the factor analysis to construct a synergy evaluation model, which can be used to evaluate and analyze whether the listed companies have achieved synergy by M&A. Chapter4is to use the evaluation model proposed by the previous chapter to do empirical research, then get appropriate results, calculate the synergy, have normative analysis for the factors that affect China's listed companies M&A synergy. Chapter5summarizes the results of this paper and makes some recommendations.