Merger And Acquisition Of Chinese Listed Companies Long-term Financial Performance Evaluation

Company merger and acquisition is both an important means of the development and enhancing the competitiveness, as well as important activities under market economy condition. As the American scholar Stigler said "no one a large American company grew up without a certain degree or some form of M&A, almost no big company is mainly dependent on the internal expansion to grow up". Just because of this, company merger and acquisition has been an academic and practical focus.This paper selects acquiring company of A shares of China’s listed company mergers and acquisitions from2006-2008as the sample, using principal component analysis method to study the financial performance change of different annual samples in the year of M&A and next two years. That’s to say, this paper aims to study the listed company M&A long-term financial performance, the empirical part adopts principal component analysis method belonging to accounting research method in the fourth chapter.The empirical results show that most M&A of Listed Companies samples current financial performance will be improved during2006and2008. When the M&A company samples in2006considered, financial improvement rate decreased comparing financial performance in2007and2008. When the M&A company samples in2007considered, financial performance deterioration rates were more than half in2008and2009. When the M&A company samples in2008considered, financial performance improvement rates were about50%in2009and2010,.When the different industry segments considered, financial performance improvement rates in the different industries show considerable variation. Some shows like the gradually rising or falling, and some shows like falling after rising or rising after falling. Finally, according to empirical findings and present problems in M&A activities of our country, from three points of view which are listed companies, government and intermediary organizations, this paper puts forward the relevant policy suggestions.