A Study On The Problems And Countermeasures In M&A For Chinese Public Companies

It is important more and more that the corporate merger and acquisition (M&A) takes effect on economic development of China, it is helpful to construct and perfect the market for corporate M&A, also is better to economic development of China.This paper researches the behaviors of corporate M&A for the public companies in Chinese share market.Based on a review of progress of corporate M&A in western countries and China, and on a instruction of corporate M&A theories in western countries and China, the author adopts theories ,such as the theory of motives of M&A, the principle of industry economics, the game theory, the theory of trust and agency, the theory of market for corporate control, combined with the statistic analysis methods, to study the M&A for public companies, covering the performance, motive, effect, legislation environment. Main conclusions are as: M&A is taken as a tool to improve companies operation performance, which is improved after restructuring, but with weak maintenance; Corporate M&A is at a low market level because the efficiency of Chinese share market is at a low levelï¼›The market behaviors related to M&A are with strong speculations; By restructuring, most of the post-M&A companies switch to flourishing industries; Between western countries and China; Huge gap exists in the legislation environment to corporate M&A, mainly as the legal system is not of consummation, not systematic, and with low authority. Aimed at problems mentioned above, the proposals are put forward in this article.