The Research On The Value Creation Of China's ICBC In Overseas M&A

The third merger trend which are still in the international banking industry began in 1990 s and its impact on China's banking industry can not be ignored.China successfully joined the WTO in 2011 and this event brought both opportunities and challenges for the international development of Chinese Commercial Bank.In recent years,more and more enterprises are in response to Chinese "going out" strategy,and Chinese commercial banks are also active in expanding overseas business.As one way of international business,overseas mergers and acquisitions has been favored by more and more commercial banks.Until now,in all China commercial banks' overseas mergers and acquisitions,although there are many successful cases,the experience of China's banking industry's overseas mergers and acquisitions is still relatively insufficient.In order to study bank's value creation in overseas M&A activities.Basedon the relevant theoretical basis of bank overseas M&A,This paper chooses four merger cases of ICBC,that is,ICBC's M&A on the Standard Bank of South Africa,on the Thailand ACL bank,on the Bank of East Asia in the United States and on Tetilbank.Then,this paper wants to give some policy recommendations to those banks that want to participate in overseas mergers and acquisitions.This paper uses the event study method and financial index analysis to analyse the short-term and long-term value creation of ICBC in overseas M&A respectively.The conclusions are as follows: four overseas M&A all create value for ICBC in the short term;a series of M&A improve ICBC's profitability,operation capacity,solvency,development ability and asset quality by different degrees.