Research On The Performance Of Reverse Merger In China Stock Markets

In recent years, Reverse Merger frequently happens in China Stock Markets, and it has drawn wide attention from industrial and academic community.Firstly, based on the west M&A theories and combining Chinese economy and security market development and list company reality, this paper makes a theoretical research on the performance of Reverse Merger; Then, by adopting Market Research Method (Market Income Analysis), and Accounting Research Method (Financial Performance Analysis), this paper makes an empirical analysis of the China listed company by Reverse Merger in the year 2000, and also make a concrete study on the factors that affect the performance after Reverse Merger.Empirical research has found that (1) Reverse Merger can generally raise the company (listed company) performance continuously, which is different from people's opinion before; (2) Comparative study of different types of Reverse Merger shows that the type of "industry merger" achieves the most prominent performance improvement; (3)By a comparative study of the factors that affect the performance after Reverse Merger, we got the following findings: by Reverse Merger, estate companies enjoy the highest performance; Performance of companies in developed areas is higher then those in less developed areas; Reverse Merger of same industry has higher performance than of cross industry; Reverse Merger of same area has higher performance than of cross area; Reverse Merger by the way of stock option compensated transfer has higher performance than of free allocation. Reverse Merger of state-owned enterprise is higher than of private-owned enterprise; The higher the ratio of changed stock option is during Reverse Merger, the higher performance improvement the company will achieve; The company with control right dispute will have relatively low performance.