Three Essays On Mergers And Acquisitions In Transitional China

This thesis was made up of three essays on mergers and acquisitions in China from the middle of 1990s. Based on the detailed review of great merger waves in China, this thesis tried to develop the mergers and acquisitions theory by introducing the idiographic background of transition economy into the traditional literature.Management buyouts were generally regarded as rational reactions to State-Owned Enterprises' inefficiency. The second sector of this thesis argued that management buyouts may cause SOEs' performance deterioration from the middle of 1990s by applying a management buyouts hypothesis with distorted motivation. The sector declared that management would choose writing down SOEs' book value instead of destroying their actual performance under low-level developed legal system and capital market, but SOEs' actual performance would be damaged artificially when legal system and capital market were better structured.The third sector provided an original explanation for why the targets in regulated industries were often overpaid in merger and acquisition activities. On one hand, the regulation of entry made the targets valuable as qualified players; on the other hand, the regulation of entry also made the existed players inefficient. This sector also declared that there to be some close relation between the regulation of entry and the market structure of regulated industries, and advanced some new viewpoints in lessening the comprehensive regulations in transition economies as well.The forth sector provided a piece of competitive literature on the long-term performance of China's listed companies by calculating the zero-to-five-year EVA index after the merger and acquisition activities. It was found that the merger and acquisition activities could improve the listed companies' long-term performance in transitional China from the middle of 1990s. The forth sector also tested some related hypotheses between the long-term performance and the merger and acquisition activities in transitional China from the middle of 1990s and got some meaningful conclusions.