A Study On Financial Takeovers' Performance Of Listed Company In China

The takeovers are an eternal topic in the capital market. Under marketing economy condition, it is an important path that proceed expansion and contract of capital, synergy and choice, control and anti-control, and it is the most convenient way that proceed the industrial integration and structural adjustment.Since 1993, there have been several hundred takeovers of the listed company in china and these events formed unique financial takeovers' phenomena. "If financial takeovers create value" is an important theme of takeovers research, because it is valuable to business enterprise science decision, and is foundation of lawmaking confirm and regulation policy rightly that we know financial takeovers' effect. This paper examines whether financial takeovers can be distinguished from other takeovers, empirically, based on accounting and stock performance data. So-called financial takeovers is under the current shell resources that have the background of the higher value, and acquirers and targets to surround the shell resources, pass the listed company the procuring of corporate control, improvement listed company the financial statement, and pursue the short-term target, such as maintain listed membership, share placement membership, second class market income...etc.There are the characteristic of target, short-term speculation, stage and statement manipulation. The general manifestation include the protect shell resources, protect share placement, the second class market exchange, takeovers by investing company and the control ownership be multifarious to transfer.The thesis is not a summary of the basic theory of the financial takeovers. Our aim is to provide some gist and selective idea for the financial takeovers of the listed company that come into the market. In this article, 113 listed companies takeovers is be selected for studying the sample that take place in the Shanghai and Shenzhen Stock Exchangesin 2000. According to financial takeovers characteristic and the manifestation, we choose to out 33 financial takeovers' sample, and choose 45 other types at the same time against the sample. We used Financial Data Methodology and Abnormal Returns Methodology to study their performance post takeovers, and made comparisons among different financial takeovers.In conclusion, there are the finance of the target, short-term speculation, stage and statement reorganization etc about financial takeovers. It can't by the root improve the listed company's present condition, and shareholders suffer a statistically significant loss. Financial takeovers has not established the mechanism to allocate capital efficiently.In chapter one of the paper, we discussed the background and the significance of the question to be studied. The chapter two is a theoretical review of the question and the study approaches. In chapter three, we concluded the attributes, and analyzed particular reasons of financial takeovers among Chinese listed company. In chapter four, we presented the study approach and model of this paper. The fifth chapter revealed the process of empirical analysis and results, the last chapter drew the conclusion, and presented some thoughts and hints on the government policy making and enterprise decision making.