Study On M&A Effects Of Listed Companies And The Choice Of M&A Types

Whether M&A activities can improve public companies' performance has been vigorously argued in academe since the first restructuring tide began in Chinese capital market in 1990's.Similar to what happened in foreign academe, however, there are still many disagreements about M&A effects on acquiring companies though it has been studied for so a long time. At the same time, it has attracted dominant attention to how to improve M&A effect. This paper is to examine M&A effect on the acquiring companies and give some advice on the choice of M&A types so as to improve the current results.After reviewing the main viewpoints about M&A motives and effects, under the direction of Value Creation theory, this thesis puts emphasis both on how to evaluate M&A effects on acquiring companies with EVA method and on how to enhance M&A effects. We collect data of companies that undertook M&A activities in 2001 and make a classification on samples according to the industries of both parties belong to before M&A affaires for a further study. The conclusion is that M&A has generally created more economic value added for the acquiring companies.Further, the effect of different types has been examined, and we find out that the types themselves are neutral and their effects dependent on the acquiring companies. Then, the author has made an analysis on the relation between the choice of M&A types and the following theories: the theory of Competence Advantages, the theory of Enterprise Resources and the theory of Core competence. On this basis, the author put forward the strategy to choose M&A types.