The Impact Of Mergers And Acquisitions On The Market Value Management Of Listed Companies

The reform of the shareholder structure which was implemented in 2005 has been achieved a great success, the institutional environment of full circulation in China's securities market was changed dramatically, market value became the new benchmark of capital. As the development of the theory of corporate value in China, in the practice of enterprise management, the term "Market Value Management " was appeared.. At the same time, with the rapid development of China's economy, a lot of Chinese companies were not content with self-development and started Mergers and Acquisitions. In asset-light industries particularly the cultural media industry, the endogenous growth couldn't met the demands of enterprise expansion strategies, mergers and acquisitions is the only to become powerful international company. Now a lot of mergers and acquisitions activities in capital market are not for the purpose of long-term development goals, but to chase after the hot spot of investment and cross-border mergers and acquisitions aimless, just with the purpose of promoting share price in a short period of time, thus to have capital gains income. Therefore Market Value Management by means of mergers and acquisitions activities should be given proper guidance and norms.In this paper, based on the research of M&A and Restructuring and the theory of Market Value Management and combined with the current situation in of capital market in China, came up with the necessity of Market Value Management and the principle of how M&A and Restructuring affected the result of Market Value Management. In the study of merger and acquisition activities which Blue Focus had been implemented in last five years, by using the methods of document analysis, case study and comparative analysis, studied the development history and the different methods of payment, deeply analyzes the operating synergy, management synergy and financial synergy that caused by mergers and acquisitions and reorganization which could increase the ability of value creation of listed company, and reach a certain degree of value operation by means of different kinds of payment, then make the company's market value stable or increase optimally. At the same time, high amounts of goodwill and business commitments from consequent on mergers and acquisitions activities may impose great risk, and it will adverse impact a company's market value if goodwill impairments or failed to reach the expected business commitments. Finally draw a conclusion that mergers and acquisitions could increase the ability of value creation, value operation and value realization, increase the company's intrinsic value and then promote the effect of market value management. The potential risk of mergers and acquisitions will produce many negative influence on Market Value Management, so the selection of target company is very important and it's necessary that not only to conform the trend of the development of market economy but also conform to its own development strategy. Through the analysis of this paper, I would like to provide some experience which can learned by public companies when they want to carry out Market Value Management by means of M&A and Restructuring.