The Empirical Study Of Mergers & Acquisitions In Chinese Listed Companies

Taking mergers & acquisitions evens of the companies listed in Shenzhen Stock Exchange that traded more than 5% shares in the latest two years as research objectives, this paper did empirical examinations on buyout price, stock price behavior and insider trading. And taking M&A evens of the companies listed in Shanghai Stock Exchange which changed controllers in 1998 as research objectives, employed accounting analysis, this paper also studied the change of operating performances for 4 years before and after M&A.The paper made some conclusions. First, M&A price didn't fulfill market law, and buyers prefer to companies that have high risks, small sizes and high circulative percent. Second, there were over reactions and excess return during M&A. Third, insider trading was serious when M&A, and different M&A type had different behaviors. Fourth, the profit was better just after M&A, but financial indexes went worse with time going, so M&A didn't make real improvement of operating performance.Finally, based on the conclusions, the paper presented some suggestions for improving M&A behaviors.