Empirical Study On The Performance Of Listed Firms Of M&A In China

In the last decade, merger and acquisition (M&A) of enterprises has been developing rapidly in our country. It has become one of the most important forms of asset restructure and resources re-collocation. Because of the complexity and the diversity of the combinations, M&A are not all correct and successful. Especially, M&A is confined by various factors during the transferring process of the Chinese economy system reform. So, compared with the developed countries, the M&A of the Chinese enterprises has its characteristics in many ways. Firstly, this dissertation analyses the current principal theory about M&A existing in the west countries. Those who agree with M&A think that it can improve enterprise's efficiency, produce synergy effect, reduce operating risk and enlarge market share. While those who suspect M&A think that may be the representation of manager self-conceit and utility maximation, and it could enhance agent costs. By comparing, we known about the basic driver causes for M&A in different conditions. Then we research the status of M&A among the listed corporations in our country. Because of the high ownership concentration and the lack of state-stock right, the agent risk in M&A become higher. So, we analyses the characteristics of the present M&A in China. In the empirical research part, we construct a general function that could weigh the enterprises' performance, and reasonably explain the economic meaning of factors. Through the whole empirical test, we find the performance declined after M&A in the listed corporations. While earning ability, operating ability and payoff ability declined, the developing ability increased feebly during the following three years. In the grouping test, we find stock structure and the scale of M&A could effect the performance after M&A, but the types and capital source of M&A have no effect on performance. At last, we provide some advice for improving the M&A performance in our country.