The Research On Cross-board M&A Performance Of China’s Commercial Banks In The Post-crisis Era

With the development of economic globalization and financial liberalization,cross-border activities in the financial field are also developing rapidly. To fulfill theWTO commitments, China’s financial market has been fully opened since2006.Andmany of the foreign banks have settled in China’s financial markets. Under thepressure of foreign banks, our commercial banks not only try their best to improvetheir strength, but also increase the pace of overseas mergers and acquisitions.Cross-border mergers and acquisitions is an effective way for commercial banks tobroaden the overseas markets and transnational operations. The outbreak of thesubprime crisis makes the world’s financial industry suffer heavy losses. But it alsobrings opportunities for cross-border mergers and acquisitions of Chinesecommercial banks. However, cross-border mergers and acquisitions of ourcommercial banks started late, and there are not many cases of transnational mergersand acquisitions. Whether in the development of speed or the scale of mergers andacquisitions, our commercial banks are far behind those in developed countries.Therefore, the study of cross-border M&A performance of China’s commercialbanks crisis era is of important significance for the future development of China’scommercial banks.Chapter I introduces the writing background, writing significance, writing ideasof the article, and presents the domestic and international literature reviews as wellas the innovation and shortcomings of the thesis.Chapter II focuses on the theory and analysis methods of cross-border M&A.First it describes the concept of cross-border mergers and acquisitions as well as the related theory. Then lists three commonly used bank M&A performance analysis:financial indicators analysis, data envelopment analysis and event study method, thetheoretical foundation for the empirical analysis.Chapter III analyzes of the current situation and the characteristics ofcross-border M&A of commercial banks. The characteristics are described from fouraspects. Considering the current economic context, it cites the opportunities andchallenges which China’s commercial banks are facing on the cross-border M&A inthe post-crisis era. This has important guiding significance for China’s commercialbanks to seize the opportunities and to meet the challenges in future M&A.Chapter Ⅳanalyzes the efficiency of commercial banks in cross-border M&A inempirical methods. Select two representative cases: the M&A between ICBC andStandard Bank of South Africa; the M&A between China Merchants Bank and WingLung Bank. Given the limitations of a single method of analysis, it uses financialindicators analysis and DEA analysis to do the empirical analysis. By analyzing inthe two methods, there is a conclusion. The bank’s operating performance will beaffected in Initial stage, but through resource integration and management for sometime, it will bring to improve business performance. Overall, cross-border mergersand acquisitions are beneficial for China’s commercial banks.Chapter V gives policy recommendations for commercial bank on cross-borderM&A in the post-crisis era. It has a guiding significance for the future of China’scommercial banks on overseas acquisitions.