Merger And Acquisition Performance Of China’s Listed Companies And Its Influencing Factors

With the rapidly development of merger and acquisition (M&A) and China’s stock market has achieved the goal of full circulation, this paper will explore whether M&A actions which taken by listed companies are consistent with economic theory, as well as what factors will affect the creation of M&A performance. It will help to regulate M&A actions of listed companies, promote the market value of enterprise and improve financial performance. Firstly, by reviewing the recently researches of corporate governance, enterprise life cycle, company M&A performance and the factors which have an impact on it, this paper establishes a theoretical framework of the company M&A motivation, corporate govemmance, enterprise life cycle and M&A performance evaluation method. Secondly, based on this theoretical framework, this paper innovatively uses event study method and accounting research to prove that there is an impact of M&A behavior on the rate of short-term stock return and long-term financial performance of acquiring company via conducting empirical research of 213 M&A cases of listed companies of 2012. Lastly, this paper explore the influence of the level of corporate governance, debt financing, managers conceit-ed, M&A characteristics and enterprise life cycle on the rate of short-term stock return and long-term financial performance of acquiring company. In light of this, M&A behavior significantly improves the short-term performance of M&A , but it has a negative impact on the long-term performance; combining two positions to one in the corporate governance has a significantly negative effect on short-term performance, while the scale of board of directors will positively affect both short-term and long-term performance; conceited managers have sig-nificant positive effects on short-term performance of M & A, whereas there is a significant negative impact on the long-term performance; the scale of M&A transaction negatively impact the short-term performance; the company in the growing stage has a positive effect on short-term performance and the long-term performance. In conclusion, based on the analysis of the results above summariz-ed and according to the special market environment in China, this paper provid-es a number of recommendations for list companies, government and investors.