The Study Of Foreign M&A Performance Of China Listed Private Enterprises

In recent years, mergers and acquisitions has gradually become a major way of foreign direct investment or foreign investment. Private enterprises began to use the way of foreign mergers and acquisitions to achieve their own development. Although number and scale of foreign mergers and acquisitions of private enterprises is smaller than that of the state-owned enterprises, but they have their own characteristics and advantages.With the basis of literature around the world, the status, characteristics and motivation of China’s private enterprises in overseas mergers and acquisitions are analyzed. With the profitability, operating capacity, development capacity and solvency of China’s private listed companies in foreign mergers and acquisitions, financial performance evaluation system is established. Under this evaluation system, through factor analysis 29 private listed companies’ performance changes in overseas mergers and acquisitions are studied. At the same time, based on changes in financial indicators of Zhongding shares, the analysis of performance’s changes is done. Finally, the advice of the private enterprises’overseas mergers and acquisitions in China is provided.This paper argues that overall performance of China’s private listed companies in overseas mergers and acquisitions experienced shocks in the post-merger integration period, to the upward trend. And recommendations from the government and enterprise level are put forward.This article seeks to be innovative in the following two aspects. First is on the basis of the sample company’s overall financial performance, deeply analyze the changes of the profitability, operational capabilities, capacity development and solvency. Secondly take the method of accounting and case analysis as the way to research. However, due to China’s private enterprises in overseas mergers and acquisitions appeared in large numbers in 2009, and the majority of private enterprises to participate in overseas mergers and acquisitions not listed, the number of samples is so limited and the window of span is not long enough. Further improvements in future research are hoped.