The Empirical Analysis Of Chinese Listed Companies' Performance And Business Structure Adjustment After M&A

This article conducts the relevant studies from two aspects: M&A happened in1999 and 2000 on listed companies and performance evaluation of M&A. Thepurpose of the research is to discuss if the M&A improves the performance of the listcompanies and effects on performance due to the type of the socks,methods ofpayment of M&A .We also study the problems of the M&A and prospect the futureof the M&A. The articl is divided into parts: The first part introduces the main theories of M&A, including the five famousM&A phases and the different point of view to sort the total M&A cases. Meanwhile,we conclude the reasons why these companies choose M&A as means to developquickly. And in this part, we review the M&A history in China, as well as concludethe different characteristics. The second part mainly focuses on the research methods and result analysis. Inthis part, we introduce the standard to select the samples and our two methods toevaluate the performance of M&A, cumulative abnormal return, financial indexmethod. Through the analysis of difference from these two results, we conclude thereturns of M&A to stock holders and companies' performance. In research results, we find the performance of M&A, happened between Chinalisted companies is obviously positive, whatever on return to stockholders orcontribution to companies performance. But this positive influence is short-term. Onthe long term, the M&A can not bring persistent positive influence to thesecompanies.