A Comparative Study Of The Performance Of State-owned And Private Listed Companies Foreign Acquisitions

With the continuous development of international trade and the continuous grown ofmultinational corporations, more and more foreign investors is attracted by the hugemarket demand and broad development prospects of China’s market, and have increasedinvestment in China’s enterprises. China in recent years has made various policies toencourage the development of large and small companies, especially in its operatingperformance.They are both opportunities and challenges for China’s listedcompanies. Because in the current market environment in China, listed companies inforeign M&A performance depends not only on the pure market factors, but also bydifferent levels of intervention imposed by the government departments for somemotivation. In view of this, based on the systematic study of the performance problemsof foreign mergers and acquisitions of listed companies in China, the study focused onthree aspects:state-owned and Private Listed Company Merger and the comparison ofthe performance status of the various government interventions in the foreign mergersand acquisitions, and the result of such intervention generated by two different kinds oflisted companies.Firstly, identifying the research of scholars from home and abroad,on the basis of the1995-2010which meets the filter criteria listed in this article,44cases of foreignacquisitions of listed companies in China become samples, then according to thestandard of the nature of the target company (state-owned or private) to have a packetinspection, using the event study methodology, and use the cumulative excess returns(CAR) to measure the short-term performance of the M&A of the sample of the targetcompany from the previous30days to the delayed10days of acquisition, use ofcontinuous hold excess returns (BHAR) to measure the sample20-22months oflong-term performance of the target company after the merger from long-termperformance and short-term performance, considering the foreign mergers andacquisitions affect the performance of state-owned listed companies and private listedcompanies. The results show that after the mergers and acquisitions, short-term foreignmergers and acquisitions of state-owned listed company performance better than theforeign acquisition of private enterprise performance, long-term foreign M&Aperformance of state-owned and Private Listed Companies has no significant difference.Then, this article attempts to explain the results obtained by empirical research fromthe perspective of government intervention in foreign mergers and acquisitions. According to certain logical order, first from the six areas analyzed themotives of government intervention in foreign mergers and acquisitions, and then referto the United States and Canada and other foreign government intervention means, fromChina’s actual situation, summed up the socialism with Chinese characteristics in thecurrent market environment, foreign mergers and acquisitions made by the Governmentin different capacities in a variety of different behaviors, based on these behaviors at theend of analysis of the impact of government intervention in the foreign M&Aperformance.In this paper, the last part is the conclusion and some consideration that according tothe conclusions proposed in this paper: To improve the performance of mergers andacquisitions of listed companies, through legislation, government and business guidanceand specification from the perspective of efficiency and fairness, namely, strengtheningthe market-driven mergers and acquisitions, changes in government behavior, it isnecessary to focus on efficiency, can not ignore the fair; focus on the actual situation offoreign-funded enterprises, guide foreign-funded enterprises faster and better adapt tothe special market environment in China; continue to strengthen capital market reformand innovation, emphasizing the role of the intermediary service market.