From Industry Focus On The Influence Of The M&a Performance Of Listed Companies

Mergers and acquisitions (M&A) has been always the hot spot in the capital markets and it is also one of the most complex socio-economic activities. After the five M&A waves, Europe and the United States had basically completed their progress of improving and upgrading industrial structure. M&A has been playing an increasingly important role in China’s capital market since it began in the1990s.M&A is inseparable on the road which China’s enterprises are becoming bigger and stronger, upgrading and transforming its industrial structure. In short, M&A have become an indispensable role of economic development.This paper tries to analyze if the merger could enhance the performance in terms of industrial concentration. First of all, the paper introduces the basic conception of mergers and acquisitions and industry concentration as well as their relationships. Horizontal merger can enhance the industrial concentration of the industry, but the degree of concentration would enhance monopoly inefficiency, resulting in the famous "Marshall dilemma", In another word, we could not enjoy the economies of scale and the effectiveness of competition at the same time enjoy. After a rigorous screening, this article chooses251samples between2001and2008in A share market. Using the principal component method to analyze the17original performance indicators, the paper find that the companies which engaged horizontal mergers and acquisitions own better performance than the companies which undergone the vertical mergers and mixed mergers and acquisitions within two years after the acquisition. Combined with the fact that China’s current industrial concentration is low, the paper concludes that the problem of the" Marshall dilemma "is not widespread in China’s industry at this stage.So that China should encourage the substantive merger and acquisitions to build stronger enterprises. Finally closely around the industrial concentration and antitrust, this paper put forward some measures about the current M&A market.