A Study About The Effect Of Industry Correlation On The Performance Of Companies With Transfer Of Controlling Right

M&A is an important part of the capital market which reflects the market efficiency and innovation well.With the development of Chinese capital market,the occurrence of control rights transfer events has become more frequent.There has been studied from many aspects and it has always been the focus of the scholars and practical person,but there is no conclusion.So the influence of industry correlation on performance of companies with transfer of controlling right will be discussed in this article.Firstly,we lay the foundation of the basic theories and means about transfer of controlling right and corporate performance by literature search and research,then we document the impact of industry correlation on the transfer of controlling right.Secondly,we define the concepts of industry correlation and the transfer of controlling right in this paper and analyze this things in terms of agency costs,governance efficiency,scale economies effect,synergies and risks.Then we selected the sample of the first shareholder changing during 2011-2013 and make the company's comprehensive performance by factor analysis from abilities of profitability,operation,repayment,growth.Finally,we describe the data that were categorized into industry-relevant and industry-irrelevant.Meanwhile,The company performance is used as the explanatory variation.The industry correlation is used to explain the explanatory variations,and the company size;ROE,etc.are used as controllable variations.Through theoretical analysis and empirical research the conclusions are as follows:(1)The transfer of controlling right can improve company performance,but this improvement need adjustment for a period of time.(2)Industry-relevant are more conducive to the company with transfer of controlling right than industry-irrelevant.(3)In this paper we divides control transfer performance into two stages: one is adaptation period and the other is performance period.During the adaptation period,industry-relevant is negatively related to the transfer of controlling right.It's mean that the performance of industry-relevant company with transfer of controlling right is lower than industry-irrelevant.During the performance period,the performance of industry-relevant company with transfer of controlling right is better than industry-irrelevant...