Research On M&A Value Of Chinese Corporation

In this dissertation, the sources of additional value in merger and acquisition are explored, as viewed from the efficiency of production factors;transfer and distribution of the value in M&A are studied, from the perspective of the stakeholders. The research framework of the value of M&A is structured with the study of value creation and value transfer.There are five problems discussed in this paper. Firstly, the history of M&A in western countries and China is expatiated. Secondly, the motives and reasons of M&A are studied. These motives are categorized with the value standard. The mechanism of value creation is researched, through the analysis of evaluating the target firm and M&A performance. By the analysis of the process, rule and trait of value movement, the different sources of M&A value can be found. Thirdly, a hypothesis that the source of additional value of merger is from the improvement of production efficiency is proved by using the means of efficiency evaluation to measure the production efficiency of public companies. Fourthly, the value transfer among the stakeholders in M&A is studied. Lastly, the effects of creation and transfer value, when foreign company merges domestic firm, are analyzed with qualitative and quantitative methods.The follow conclusions are drawn in this research:Motives and reasons of M&A are categorized into two kinds: the motives of creating value and the motives of transferring value. The value movement in M&A includes the transfer of inventory value, the creation and distribution of additional value. Transferring inventory value is necessary condition that the new value brought out. Creating new value is the purpose of the inventory value transfer.Under the framework of "factors-cooperation-contract-surplus", taking into account the productive characteristics and exchanging characteristics, the essential of corporation in M&A is creating the cooperation surplus. Merger and acquisition achieve the substitution of the market of a sort production factors for the market of single factor. There are two kinds of approach to create new value by merger. The same sources of new value by both kinds of approach are enhancing the production factors efficiency, so more cooperation surplus is brought out. Efficiency of production factors can be improved through ameliorating technical efficiency, distribution efficiency and dynamic efficiency.M&A transactions play a persistent, stable and positive role in the improvement of the production efficiency. The transactions promote the value of corporation, and all kinds of M&A transactions present the effect of value creation.There is a large space for raising the technical efficiency of Chinese enterprises. Inefficient production is pervasive in large companies. Although more and more M&A transactions appear, the industry development is still in the primary restructuring stage.The M&A transactions can bring out social wealth, and most of the stakeholders in M&A are the beneficiary. The trend of income change of firm owners, managers and employees is increase. The short-term profit of target company creditor is decrease, and the short-term profit of buyer company creditor is increase. The external stakeholders' returns are decreased.The merger between foreign firm and domestic firm creates stronger effect of creation and transfer value than the merger between domestic firms, so it is beneficial to society. The returns to the external stakeholders increase, but returns to the internal stakeholders decrease.