The Research On The M&A Performance Of Acuquiring Companies As The Background Of The Split Share Structure Reform

Since the late of19th century, in the Western countries, mainly inthe United States, there have been five M&A waves, and the scale andintensity of waves are more than once. Compared with Westerncountries, M&A in our country started late. Chinas modern corporatemergers and acquisitions appear until1984. Due to historical reasons,the coexistence of "dual ownership structure" tradable shares andnon-tradable shares has existed in China since1992, which called thesplit share period. The existence of the split share structure seriouslydistorted the pricing mechanism of the M&A market, made theprofit-based of large and small shareholders difference, largeshareholders expropriation of small shareholders, and hindered thedevelopment of the M&A activities of listed companies in China. In April2005, China officially launched the reform of split share structure; thesplit share structure reform is the important initiative in the history ofChinas securities market. As the background of the split share structurereform, what the performance of listed companies in China before andafter M&A changes, as well as the influencing factors such as the sharereform, M&A characteristics, what kind of relationship with performancechange.Firstly, this paper adopts the accounting method to analyze theM&A performance of the acquiring company under the background ofthe split share reform. By building a comprehensive system of financialindex, with the help of SPSS statistical software, the paper adopts the method of factor analysis to extract factors in the index system ofthirteen financial indicators, calculates a composite score of the annualfinancial performance, and analyzes the differences before and afterthe M&A. Secondly, the paper adopts the packet inspection method totest factors affecting the performance. Lastly, the paper uses theregression model to make judgments on factors affecting theperformance changes. The conclusion is: in the long term, M&Aactivities don’t improve the long-term performance of acquiringcompanies, and the improvement of long-term performance is notobvious. There is a significant correlation between the factor of sharesreform and M&A performance, and the longer, the effect is graduallyweakened, even not related.