Motive Analysis And Performance Empirical Test Of Domestic Commercial Bank Merger And Acquisitions (M & A)

Since 20 century 90s, there has been a huge wave of merger and acquisition in global financial industry, which evokes billows and enlarges from time to time. Till today we’ve already known all of the oligarchic banks grown from merger and acquisition. And this time the financial crisis has ruined many strong banks in the developed countries. Fortunately, it brings a smaller effect on ours. From this point, we should analyze its mechanism, and the most important thing is to find worthy lowland. We may feel regret, because our theory research and conduct on this field is on the first step, which needs improving more deeply and thoroughly. I hope this paper can guide the coming bank merger and acquisition. Theoretically speaking, the bank merger and acquisition is the Pareto improvement which could bring the re-integration and re-allocation of the resources. However, it has not in fact. Many western economists have done lots of bank merger and acquisition analysis and found out many banks have not bring performance improvement through M & A. As the development of our commercial banks M & A, whether the M & A could bring performance improvement and how to improve it through M & A has become serious and hot.Through selecting adequate sample and data, this paper applies relatively mature market analysis, DEA method and accounting ratio to do the empirical analysis of financial effects in reflection of capital market, input-output effect and effect of accounting targets, then accomplishes the research task.The content and structure of this paper are divided to six chapters. The first chapter is introduction relating the paper background and bringing forwards research problems and senses. The second chapter is the review of theories and literature, which relates the academic situation while arguing theoretical foundation of this research, also it contains the economic cost of bank merger and acquisition.The third chapter discusses its motivation, finally, I discuss the motivation in our domestic commercial bank M & A. The forth chapter studies research methods and designation. The fifth chapter is empirical analysis and discussion. The sixth chapter is conclusion and suggestion. For the limitation of the number of Merger and Acquisition practice in our band industry, this paper makes four national shareholding bank and six joint-stock commercial banks which form the total sample to do the research. First, this paper used the event study to analyze the reflection of the bank Merger and Acquisition in capital market, then used accounting ratio to analyze the acquisition between the Ever Bright Bank and China Investment Bank, then used DEA method to analyze the input-output effect of the bank M & A, and make something inefficient better. In the end, this paper used the regression model to analyze the seven factors how to influence their efficiency.The innovation of this paper is applying event study, DEA method, accounting ratio method and regression model to analyze the financial effect out of the view of the integral and partial fields, in the short run and in the long an the basic of small samples. Then there is the conclusion and advice we may give.