The Performance Study Of Merged Listed Companies In Our Country

As a voluntary and initiative corporate strategic behavior, mergers and acquisitions has more than 100 years of history in Europe and the United States. During the 100 years of development, there were more than 5 large-scale M & A booms in capital markets of Europe and the United States. After the fifth time, the global pattern has been formed.In recent years, due to the continuous development of China’s market economy, the occurrence of M&A in stock market is dazzling and dizzying, competing to appear in the major financial reports. As an effective means for the rapid development of enterprises, many listed companies have a soft spot for M&A. Since 1993, after a short period of ten years of development, M&A has development a lot, not only in areas and pattern, but also in the model. As an effective way for the external expansion, M&A not only become the most important means of social reallocation of resources in the capital market, but also speed up the social capital concentration, optimize the industrial layout, adjust the industrial structure upgrade and improve the competitiveness of enterprises, etc.China’s securities market has been in continuous development and improvement, and in this process, through mergers and acquisitions, some listed companies ultimately get the synergy of resources, achieve the company’s strategic development, increase the value of the company, as well as add the Income of shareholders, and embark on a sustained and healthy development. However, we should also recognize the gap of capital markets between European countries and China because of the special nature of our economic system, coupled with our late start. There also exists the issue of securities market system and governance structure of listed companies. Most of M&A of listed companies behave as the financial restructuring of the status quo. As the main body of merger, whether the performance of listed companies has been raised due to M&A event, or whether the M&A can create value for listed companies, and what are the factors affecting the acquisition of the company’s performance, are of practical significance for M&A decision-making theory and practice. So the further study on the acquisition performance of listed companies in China is of very important theoretical and practical significance.In this paper, we choose domestic A share listed companies in 2006 as samples. By collecting information and data, we adopt event study method and factor analysis method to study on M&A performance of short-term and long-term of our Listed Companies. Finally, we summarize the research conclusions, analyze the deficiency and propose practical application and follow-up study’s recommendations.This paper is divided into five chapters, which are summarized as follows:Chapter 1:Introduction.This chapter introduces the research background、motive、meaning and the research approach.Chapter 2:Foreign and domestic research literature review of M&A and M&A performance. This part describes the main study results of M&A and M&A performance from home and abroad.Chapter 3:Empirical research on M&A performance. This chapter chooses domestic A share listed companies in 2006 as samples. We adopt event study method and factor analysis method to study on M&A performance of short-term and long-term of our Listed Companies.Chapter 4:Normative analysis on factors which influence the performance of Listed Companies. This part mainly analyzes the factors from the microscopic and macroscopic aspects. At the micro level, we analyze mainly from the acquisition of the company, the correlation between the industry, the nature of mergers and acquisitions, post merger integration and the behavior of managers;at the macro level, we discuss mainly from the economic environment, policy environment and legal environment.Chapter 5:Conclusions, recommendations and prospects. This chapter describes the main conclusions of this study and analyzes the deficiencies and the need to improve this place, and proposes practical recommendations and follow-up studies of future research prospects.Throughout the above research, this paper mainly has its own contributions as follows: 1. At home and abroad, there are thousands of papers research on M&A performance of listed companies。However, very few of the previous studies adopt two methods at the same time to inspect M&A performance of short-term and long-term. In this paper, we both adopt event study method and factor analysis method, which adds a new way of thinking for M&A performance study and ensures the robustness and effectiveness of the results.2. In this paper, we choose 2006 as base year since it is the first year of reform of non-tradable shares. We have tested the implementation of reform of non-tradable shares and made research results closer to the development of China’s securities market.3. Our conclusions is further confirmed the existence of stock market losses ahead of the phenomenon of transaction information, which can provide theoretical evidence for China’s securities market to formulate relevant policies.At the same time, there are some deficiencies in this article as follows:1. There are few samples.In order to simplify the handling of research data, there are only 47 effective samples left after screening and striking. The small number of samples may affect the reliability of conclusions. Meanwhile, research didn’t take into account that industry can influence M&A performance.2. Methods we adopted do not fully apply to China’s securities market.3. When adopting event study analysis to do empirical analysis, we do not compare different types of M & M’s CAR,...