Study On The Impact Of M&A On The GEM Companies Growth

M&A is important form of capital centralization in the company, is a kind of expansion of the company, realize the important strategy for the development of the company. M&A get favor of Chinese listed companies increasingly. China in October 23,2009 launch of the GEM market and adopt policies to support these companies with high growth characteristics, after six years of time, the GEM market as China’s securities market,the financial sector and industry development sound plays a great role. In our country the GEM listed companies under the background of gradually attach importance to and actively implement the strategy of M&A, the GEM companies in China implement the strategy of M&A impact on firm growth problem that not is allow to ignore. In view of this,this article on M&A to the GEM listed company growth this selected topic, the influence of the mode of payment in mergers and acquisitions, financing and inertia these important factors impact on the company growth issues discussed, the purpose is to discover and understand the impact of M&A on the company’s growth and the mechanism of law, and on this basis puts forward some proposals to the GEM listed companies, both for our country the GEM companies offer some guidance when implementing the strategy of M&A, and can enrich the GEM companies M&A and growth theory in our country.Based on the company’s growth theory, M&A theory and literature, this article are reviewed on each payment on the acquisition, financing mergers and acquisitions inertia levels on the three aspects of the company’s growth. The author will be the mechanism analysis and empirical testing. The author selects the 107 companies listed on GEM in2012 to implement the strategy of mergers and acquisitions as a sample company, from growth rate, growth efficiency, growth quality and growing risk four dimensions select the appropriate quality indicators and EVA growth into the growing efficiency dimension evaluation, the author of the 15 indicators selected to build the company’s growth model uses composite score factor analysis, and the growth model to calculate the score based on the sample companies. By using Wilkerson signed rank test method for the company’s growth score sample tested, the results show the impact of the acquisition on the company’s growth overall decreased first and then rise in "U" shaped trend; mergers andacquisitions of companies listed on GEM cash payments Information, its growth more significant changes, decreased first upward trend; in non-equity financing acquisitions of the company’s growth appears "U" shaped track changes more obvious; a high level of inertia merger company, its post-merger a significant increase in growth. Based on this study, I believe that the GEM market regulatory authorities should improve the information disclosure system, while strengthening supervision of the strict implementation of the GEM out of market system; listed companies should strengthen internal management and rational implementation of M&A strategy to improve the company’s growth; investors should be concerned about the GEM company’s growth, rational investment.The innovation of this article lies in introducing EVA growth company growth evaluation index system, using factor analysis method to index constructs the comprehensive scores of the GEM companies growth model, a more comprehensive and objective evaluation of business growth. In addition, because in the past research of M&A financing and merger and acquisition of inertia emphasis is insufficient, this article also more comprehensively considering the effects of mergers and acquisitions on corporate growth, study the different ways of M&A financing and merger and acquisition of inertia level mechanism of impact on firm growth, and has carried on the empirical test.