Performance Of The Financial Crisis In The Context Of Resource-based Chinese Listed Companies

M&A is a complex economic phenomenon that appears in a certain stage of the market economy and also is an important form of the transactions of enterprise control and property rights. Besides, M&A has a strong impression on the enterprise’s operation as well. The "butterfly effect" caused by the US subprime mortgage crisis induces a huge impact on the global M&A market. While the heat of China’s M&A market didn’t drop and the resources based listed companies contribute a lot. These resourced based companies in the energy and mineral resources industry, belong to the capital-intensive industry, whose raw material is mostly the non-renewable natural resources and under the intensive control of government. Under the financial crisis, challenges combining with opportunities appear in the management circumstance of energy and mineral resources industry. On the one hand, energy mineral market demand reduced a lot due to the impact of the economic crisis which lead to a decline in operating performance of the resource-based companies. In this circumstance, the companies need a large scale integration and change the way of development to improve the efficiency of operation. On the other hand, affected by the financial crisis, part of the overseas enterprises run in difficult and the price of assets going lower which creates a superior condition for the Chinese enterprises to implement mergers and acquisitions.Based on the factor analysis in empirical methods, the paper studied M&A cases of resourced based that happened in year08and09to find out the performance trends in the four years before and after and analyze the influence of the financial crisis in M&A.The empirical results show that the performance of M&A declines in the year that M&A happened, and revive the year after, while the rise doesn’t keep sustainable. All in all, the performance of M&A is not that good. The paper also has an empirical study on performance of M&A of different subject matters, with the result shows that subject matter in equity fluctuates more intensely, and has more risk. What’s more, the paper dig further in what’s the performance effected by the scale of M&A in equity mergers and acquisitions, and result shows that the performance of controlling M&A fits well with the total subjects. Controlling M&A, the main form of resource-based listed companies’ M&A, has a obvious effect on the total performance.Under the high systemic risk environment during the period of financial crisis, the paper offers some proposals with the angle in controlling merger’s risk and improving the M&A performance.