Research On The Performance Of Bancassurance Mergers In China

In recent years, bancassurance mergers have become the strategy of banking and theinsurance firms as regulators releasing banking and the insurance firms’ equity investment.Based on this circumstance, researches on performance of bancassurance mergers havepractical significance for mixed operation in China.This paper mainly studies on the survey and short-term performance of bancassurancemergers which are market performance and operating performance on the basis of thetheory of bancassurance mergers. This paper uses event study to measure marketperformance of M&A, accounting and Date Envelopment Analysis to measure operatingperformance of M&A. Empirical tests on performance of M&A find that the news hadleaked out before mergers and short-term market performance of M&A turns to benegative to shareholders. Study in accounting and DEA find that operating performancewouldn’t be revealed in short term but M&A party would be at risk because of mergers.According to this paper, the suggestions have list below: firstly, it is not reasonable toparticipate in the bancassurance for investors in secondary market. Secondly, shareholdershad better try to improve the governance structure. What is more, managers had betterrestrain behavior in mergers. Lastly, regulators had better try to perfect legal laws andregulations on bancassurance mergers.