Research On The Nature Of The Property Rights Of China's Listed Companies And The Performance Of Related M&A

Under the background of the economic system in which China is dominated by the state-owned economy,most of the listed companies at the present stage are restructured from former state-owned enterprises and are affiliated with large-scale group companies.The intricate interest relationships between listed companies and group companies have led to the occurrence of related mergers and acquisitions.The group company can temporarily sacrifice the overall interest to help the listed company to develop better.Similarly,the group company may also transfer the interests of the listed company for the sake of the overall interests.This makes the related mergers and acquisitions occupy a large proportion in the M&A activities of Chinese enterprises.With the continuous deepening of China's stock improvement process,China's capital market has basically achieved full circulation,but the ownership structure of listed companies in China belongs to the equity concentration system,so the controlling shareholders control the decision-making power of listed companies.In this case,the nature of the property of the owner-acquirer will have a significant impact on the performance of the associated mergers and acquisitions.Through literature research,it has been found that the existing related research mainly focuses on the nature of property rights of the main M&A party,and it rarely deals with the property rights of the acquired party.Therefore,this paper intends to analyze the nature of property rights and related M&A performance and analyze the property rights of the main M&A party.Relationships with associated M&A performance.This article takes 252 related mergers and acquisitions events in 2008-2013 as the research object,and intends to use the accounting research method to construct a scientific and reasonable evaluation index system and use the principal component analysis method to realize the measurement of the financial performance of the related mergers and acquisitions.The event research method was adopted to calculate the market performance of the associated M&A by calculating the excess return rate before and after the sample merger.On this basis,the changes in the performance before and after the merger and acquisition are analyzed,and the relationship between the nature of the property of the main acquired acquirer and the performance of the merger and acquisition is determined through the analysis of the correlation mean value.Finally,a multivariate linear regression method was used to introduce relevant variables for analysis to further validate the previous results.The study finds that the principal component scores and excess returns of listed companies have a positive maximum value for one year after their associated M&As,and the relevant values gradually decrease over time.This shows that after the merger and acquisition of financial performance and market performance have greatly improved in a short period of time,but over time this positive effect will gradually diminish.Regarding the relationship between the nature of property rights and the financial performance and market performance of related mergers and acquisitions,the two have the same conclusion.That is,when the main merger and acquisition company is a state-owned enterprise,its financial performance and market performance are better than non-state-owned enterprises.When the merger and acquisition company is a non-state-owned enterprise,Financial performance and market performance are better than state-owned enterprises.Based on the research conclusions,this article puts forward some policy suggestions from three aspects: listed companies,governments,and investors.For example,listed companies must establish correct motives for mergers and acquisitions,and make mergers and acquisitions decisions from the perspective of corporate governance;the government must strengthen supervision and reward mechanisms and improve the law;investors should focus on information disclosure,understand important information and make investment decisions,and so on.It is believed that with the joint efforts of all parties,related mergers and acquisitions will surely promote the rapid development of the enterprise.