The Effects Of Secondary Market Placard Open Acquisition On Stock Prices And Operating Performance

The 40 th anniversary of reform and opening up has brought about rapid economic growth and changes in the financial market.the frequent occurrence of card acquisitions in the A-share market is becoming more and more alarming.The secondary market placard open acquisition behavior often brings good signals to investors.once the announcement is issued,it will cause a rapid reaction in the market and thus cause the stock price of the acquired company to fluctuate,which to a certain extent aggravates the instability of the market.Therefore,the secondary market placard open acquisition has been closely watched by investors,institutions and regulators.At present,the existing literature at home and abroad mainly studies the short-term impact of secondary market placard open acquisitions.the sample period of the study is focused on 1 to 3 years,which can not reflect the information and laws of the securities market in a very comprehensive way.Then,with the changes of the times and the outbreak of card-raising events,the study of card-raising behavior in the A-share market should be considered and further evaluated.First of all,this paper collates the relevant provisions of the secondary market placard open acquisition of Chinese companies and the announcement of the A-share listed companies from 2007 to 2017.The characteristics of the target enterprise,the main body of the acquisition,the motivation of the acquisition and the timing of the acquisition are analyzed respectively.Then using descriptive statistical analysis and Logit model to carry out a detailed analysis of the licensed sample companies,each regression has eliminated the non-significant variables,after three regression to find the total assets representing the company's operating performance ability,the growth rate of business income representing the growth capacity of enterprises,The shareholding ratio of the first largest shareholder representing the corporate governance factor has a significant negative effect on the possibility of being raised,while the asset-liability ratio representing the capital structure of the enterprise will have a significant positive impact on the possibility of the acquisition of the brand.Then this paper uses the propensity score matching(PSM)model framework to match 179 pairs of listed company samples,namely,the listed experimental group company and the unlisted control group company.Then the event window [-10,60] was selected to calculate the average excess rate of return(AAR)and the cumulative excess rate of return(CAAR),)of the experimental group and the control group,respectively,and for [-10,1],[-4,? 1],[-1,0],[-1,+ 1],[-1,? 2],[0,? 5],[0,? 15],[0,? 30],[0,? 60] windows were carried out between the experimental group and the control group.CAAR mean difference T test and CAR regression analysis,Through the above methods to test the short-term value effect of the listed company,it is found that the event of the public announcement will make the listed company obtain significant short-term positive excess return.And experienced significant upward fluctuations during the event period [-4,1],which may be due to the early disclosure of acquisition information.The above research found that the relevant regulatory bodies in China also need to increase the management of information disclosure in the stock market,the existing information disclosure system in China is not complete enough,we should pay more attention to and invest in maintaining the healthy development of the securities market.Finally,this paper uses independent sample T test to investigate the impact of the listed acquisition event on the operating performance of the listed company within three years before and after the event.firstly,the average return on assets,return on net assets and earnings per share of the experimental group and the control group are compared.To test whether the difference was significantly different from 0,and then to test the mean difference T of the financial indexes of the experimental group in the first three years and the second three years [-3,0] and [0,3],[-2,0] and [0,2],[-1,0] and [0,1],The results show that the return on assets index will have a significant negative effect one year and the third year after the announcement of the acquisition.The possible reason is that the listing behavior itself is for a short-term purpose and is not based on the long-term growth of the company's value;it may also be that the card raising is too fierce and has an impact on the ownership structure of the company.It is not conducive to the effective supervision of the company's shareholders on the agent,resulting in a decline in operating performance.The conclusion part of the article combines the current market situation and the results of this paper,respectively,for investors,listed companies and regulatory units put forward relevant policy recommendations.