Study On The M&A Performance Of Chinese Listed Companies

Mergers and acquisitions has a history of centuries, after the five M&A waves happen, tools, types and areas of M&A have developed quickly, mergers and acquisitions is an important way for enterprise to enhance the market share and seek synergistic effect. At present, China are being at a crucial stage of economic reform, companies face intense competition, M&A becomes a important tool to enhance competitiveness, so people pay more attention to how to improve the performance of companies by M&A. In recent years, our government has promulgated a series of policies and regulations, streamlining the procedures of mergers and acquisitions and encouraging enterprises to become bigger and stronger through mergers and acquisitions, thus China’s M&A market having developed rapidly. While, there are big differences in the performance of M&A between industries and types of M&A. So the reasonable choice of types of M&A is an important step in its success during the process. And this paper aims to discuss whether there are differences on the changes of performance that different industries and types bring to the quoted companies and the differences are obvious or not.Firstly, this paper summarizes the related theories on the M&A performance of quoted companies. Then, the author analyzes the current situation of different industries and types of M&A in our country, mainly from quantities and payments. Thirdly, taking the 133 cases of M&A in 2011 as the research subjects, the author compares their performances of M&A from 2009 to 2013. As for the empirical part, by using the financial indications, the author first analyzes M&A influences the profitability of the quoted companies from three aspects:rate of return on common stockholders, equity return on asset and per-share earnings. Then the method of data envelopment analysis is used to calculate the overall performance of M&A and T-test method is used to value the differences. Finally, based on the conclusion, the author makes relevant recommendations to improve the M&A.