The Empirical Analysis Of Company Characteristics、Acquisition Probability And Abnormal Returns

Acquisition plays an important role as a shortcut which companies achieve scale expanding and enhancing the competitiveness and strategic transformation of in the process of enterprise growth and development. Along with our country promoting and perfecting the reform of market economic system, the acquisition also plays a very important role in the aspects which our country government implement the adjustment of industrial structure an resource optimization configuration. From our country launched the pilot work of the reform of non-tradable shares in 2005,equity division reform was basically completed by the end of 2007, and then to A-share listed companies realize full circulation of stocks in the true sense in 2011, the mobility of capital market is growing in our country. Combined with the promulgation and implementation of our country securities law, the company law and the measures for the administration of the listed company, which makes acquisitions activity of listed companies face perfect exterior market environment. The trading amount and quantity of acquisition of our country listed companies are rapidly improve, merger, acquisition and reorganization activities entered into a new climax period. Therefore, it is necessary to research the acquisition of listed companies in our country in the new situation down.In this paper, after the article studies the background and significance in this paper as well as review and comb the existing literature and related theory of merger and acquisition, in the era after the age of non-tradable shares and China’s capital market and institutional environment, we analyzed the problem in three aspects related to the acquisition of listed companies in China, In particular, we primarily study the relationship between company characteristics, the acquisition probability and abnormal returns. First, this paper takes acquisition target companies and corresponding matching companies in 2009-2012 as sample and use the method of Anova and Logit regression to analyze the financial characteristics of the target company in our country capital market. Second, we take the acquisition target companies as samples in 2009-2012 and use the least squares method to analyze the relationship between probability of acquisition of listed company and the company type, namely whether the probability of takeover of listed companies is affected by company type which is ST company or non ST company. Third, we take the acquisition target companies as samples in 2009-2012 and use event study analysis to study the relationship between probability of being acquired and abnormal returns which is produced by acquisition activity, namely whether the abnormal returns will be increasing along with the increase of probability of takeover of listed companies.Research findings: First of all, the target company in China’s capital market is the low efficiency of management, low growth rate, scarce resource, the larger assets and scattered equity relatively. Moreover, the company’s operation ability, growth ability, expanding ability and liquidity has explanatory power in the strong degree which the listed companies become the target of a takeover. Second, we found that the probability of takeover of listed companies is affected by the company whether as ST company, as the target company, ST company takeover probability is higher than the probability of non ST company, which indicate that acquisition deals has obvious characteristics of shell resource in our country. Finally, we found that probability of being acquired and the abnormal returns of listed companies generated by buying event show the positive correlation, that is the higher the probability of takeover of listed companies, the higher the expectations and the market reflection.