Research On M&As And Restructuring Of Listed Commercial Firms In Chinese Stock Markets

The paper aims to give a deep and complete research to the M&As of listed commercial firms in Chinese stock markets. We use data on M&As of 38 Chinese listed commercial firms in 1998 through 2002 to identify the M&As law in this industry.We find that these M&As are determined by both macro and micro reasons. In macro aspect, the more and more important role of commerce in the nation' s economy and the imperfect market structure of China' s commercial industry, as well as the undeveloped commercial style are the main causes. On the other side, the incentive to expand there business scale, to keep there rights to be a listed firm and to acquire the synergy of M&As are the main micro causes of these restructurings.Also, we make out that different M&As form have different effect. Those firms who have completely changed their main business from commerce to other high-return industries have the best stock market appearance (the higher Tobin q) and the highest ROE (return of equity). Those firms who expanded their commercial business blindly to some other similar industries perform even worse after they had their restructurings.Author Name: Wang Hui Chao (National Economics) Directed by: Professor Zhao Shou Guo...