The Study Of China’s Banking Industry’s Merger And Acquisition Performance

Since the end of twentieth Century,with the development of science and technology,the degree of economic globalization has become more and more deep in all corners of the world.In order to conform to the trend,both countries are involved in the competition and cooperation of international trade,international finance and international investment.As we all know,finance is the most important part of virtual economy.Therefore,more and more financial institutions continue to enrich the connotation of financial globalization by means of transnational operation.Among them,the banking industry as the most basic and most important part of the financial sector,and constantly improve the international financial layout so as to enrich and deepen the connotation of financial globalization.In the face of increasingly fierce competition in a great many industries,China’s banks are constantly seeking their own development,and actively and steadily push forward overseas mergers and acquisitions.Firstly,in this paper,the basic concepts and basic theories of bank overseas merger and acquisition are introduced.Secondly,by reviewing the development process of China’s banking industry in the past ten years,this paper summarizes the characteristics of China’s overseas mergers and acquisitions and the reasons of M &.At the same time,this paper introduces three main methods to evaluate the performance of M &A,which are event study method,financial ratio method and parametric and non parametric method.By comparing the advantages and disadvantages of various methods,the stochastic frontier approach is chosen as the main research method to evaluate the performance of Chinese banks’ overseas mergers and acquisitions.Secondly,this paper takes the sample period from 2006 to 2015 as the sample interval,and selects 19 cases of overseas mergers and acquisitions in China in the past ten years.In the calculation of the stochastic frontier,in addition to the choice of six banks involved in overseas mergers and acquisitions,while the selection of overseas mergers and acquisitions has not been the largest domestic activities of the eight banks together to calculate.In addition,in terms of input and output indicators,based on the production method and the method of comparative law intermediary assets,according to the motives of overseas Chinese banking mergers and acquisitions,one is the development of international business to expand the international market share;two is to learn advanced technology and improve the management level.Therefore,the author decided to choose the mediation method.The net loan and interest income on behalf of the traditional business revenue,as well as the business and management fees representing the intermediate business income as the output indicators,fixed assets net value,interest expense,business and management fees as input indicators.Further,using Frontier4.1 software to measure the efficiency of these 14 banks in the past 10 years.It is found that the success of overseas mergers and acquisitions to a large extent can improve the technical efficiency and allocative efficiency of resources,but this positive effect will require a period of integration can be seen;At the same time,this paper analyzes the three classic cases of mergers and acquisitions found that mergers and acquisitions will have a negative impact on the bank.Therefore,in order to improve China’s banking industry overseas acquisitions this level of performance,puts forward four suggestions: first,grasp the best time of the acquisition;second,choosing a proper area;third,careful selection of acquisition object;fourth,intensify the integration after merger and acquisition.