Chinese Commercial Banks Empirical Study On Mergers And Acquisitions

Merger and acquisition of China’s commercial Banks has become a trend for the future development of the enterprise, but due to the economic environment is not yet mature,financial academic study of mergers and acquisitions present stage is not sufficient, Banks need to system summary and Suggestions about its merger and acquisition. In this paper,through the combination of theoretical and empirical research, the main use of stochastic frontier approach, analyzes the driving factors behind the mergers and acquisitions, mergers and acquisitions after the effect, and the some factors influencing the performance of commercial bank. For bank Mergers and Acquisitions have theory significance and the practical significance of the feasible.The article accurately by applying the method of efficiency frontier research on our country commercial bank merger and acquisition performance empirical data. Combining with related theory and background characteristics system in China, full of the Mergers and Acquisitions performance in China’s banking industry may affect factors for empirical analysis. For some possible influencing factors of Mergers and Acquisitions performance in China’s banking industry, empirical data analysis. Reveal the motivation of Mergers and Acquisitions performance, and performance factors. Can be seen from the empirical analysis results: short to medium term, the one-year to within three years, the commercial bank cost efficiency affected by mergers and acquisitions present obvious positive growth, profit efficiency affected by Mergers and Acquisitions presents the negative growth; For a long time,that is, more than three years, the bank X efficiency affected by Mergers and Acquisitions positive growth. Cost efficiency is the mechanism of action of positive growth, bank’s asset growth, Banks’ asset allocation ability and the stability of the bank, at the same time affected by mergers and acquisitions and increased; Banks’ profit efficiency influenced by mergers and acquisitions, in one to three negative growth, the main reason is the short-term profitability of Banks affected by mergers and acquisitions. Research also shows that excellent growth environment, and relatively loose monetary policy, for commercial bank X efficiency has a positive effect; At the same time, one of the important ways to improve the efficiency ofcommercial Banks is the expansion of assets.Empirical conclusion is merger and acquisition activity has inverted u-shaped effect on performance of commercial bank, in the year to a three-year, Mergers and Acquisitions has certain positive influence on bank performance, mid- turned into decline negative effects,more than five years in the long-term, Mergers and Acquisitions has a positive effect on bank performance, but not dramatically. Finally, the article on the state-owned commercial Banks and national regulators put forward several policy Suggestions.Nowadays the backdrop of the international economic and financial integration, financial globalization is increasingly obvious, mergers and acquisitions because has the enhancement enterprise scale effect, expand market share and other obvious advantages, become the essential choice of the enterprises to improve their competitive ability. Banks should pass the reform trend. In recent years, our country enterprise mergers and acquisitions scale continues to expand. overseas mergers and acquisitions, corporation merger and acquisition is more and more prominent, in view of this, the academic circles have begun to extensive and in-depth attention and research our country enterprise mergers and acquisitions. Existing Mergers and Acquisitions research mostly analysis for a period of time within a certain scope economies all industry Mergers and Acquisitions events happened few research choose single Mergers and Acquisitions case, less study of a certain industry mergers and acquisitions. Mergers and Acquisitions case studies can be fully considering the situation of the case, but not as a whole or analysis on industry mergers and acquisitions, the conclusion is not representative; For all industry mergers and acquisitions can study sums up the general conclusion on mergers and acquisitions, but these conclusions do not have industry degree of differentiation, it is difficult to show individual industry characteristics of mergers and acquisitions, and thus reduce the conclusion on the applicability of the specific industry. Commercial Banks to provide consultation for general corporate mergers and acquisitions, assessment and credit services, is the enterprise mergers and acquisitions of other industries smoothly progress important intermediary institutions, is a member of the enterprise Mergers and Acquisitions is extremely important in the study, but the existing Mergers and Acquisitions research seldom specifically focused on commercial bank mergers and acquisitions. However, along with our country’s financial industries managed and supervised respectively on loose, the deepening of financial opening to the outside world and cooperation, cross step by step, comprehensive financial business, large scale of banking mergers and acquisitions, mergers and acquisitions growth momentum, but also show some characteristics of the industry. Therefore, can be thought of in-depth study of commercial Banks Mergers and Acquisitions is very necessary.Prior to the implementation of the first, in Mergers and Acquisitions, the Mergers andAcquisitions activity of Banks must consider the impact of short-term profit ability, the profit creation ability are relatively weak Banks, need more wary of mergers and acquisitions.In the second place, from 3 years to consider for a long time, bank mergers and acquisitions is, of course, should be yes. In the enterprise growth and intensive cost as the development goals, rather than Banks to increase short-term gains as the goal, mergers and acquisitions is first of all, is worth considering the decision.Third, increase the cost of bank efficiency and profit efficiency. Commercial Banks can expand the scale of its assets ratio, reduce its loans accounted for the proportion of deposits,increase the owner’s equity to total assets ratio, to improve the return on total assets.Fourth, if the pursuit of Diversification as a commercial bank Mergers and Acquisitions is seeking to achieve one goal, should be timely and appropriate change traditional model of previous mergers and acquisitions and mergers and acquisitions, because before the existing analysis of mergers and acquisitions, according to commercial Banks Diversification level is not in the short term.Fifth, improve the level of X efficiency of Chinese commercial Banks, from a policy perspective, the relevant departments can through to the regulation of the financial markets, to provide a healthy and effective economic environment, at the same time, through the implementation of monetary policy, appropriately reduce the state-owned property of commercial Banks, to improve the cost efficiency of the Banks to expand.