An Empirical Study About The Influence Of The Herd Behavior Of Listed Companies On Corporate Performance

Company merger and acquisition is a important way to allocate resources efficiently in stock market. However not every company merger and acquisition is reasonable. According to many researches, many company merger and acquisition don’t bring interests to the integration, but there are still many company mergers and acquisitions and many M&A targets are in the same industry, which satisfied the descriptive definition of herd behavior. Therefore, the article will clear whether there are herd behavior in M&A or not and under the influence of herd behavior, how the corporate performance changes.The article chooses listed companies who have M&A in Chinese stock market from 2007 to 2015 and gets the conclusion that the M&A targets in medical treatment and public health, culture&media, construction&real estate and information technology are gathered in each industry spatially and temporally. There are further discussion about the reason behind the industries.The article chooses the four industries to further analyze how corporate performance changes under the influence of herb behavior. Using financial index of every M&A in construction&real estate from 2008 to 2013 to test the changes of corporate performance in factor analysis and non-parametric test.Conclusions are as follows: herb behavior has great changes on corporate performance in M&A; the change of corporate performance to the corporate who is in M&A earlier is better than the companies who are later; the change of corporate performance to the corporate whose target is in concentrated in the industry is better than the companies whose target is in unpopular industry.