Positive Analysis On M&A Performance Of Listed Company In China

Merger & Acquisition is the permanent topic on the capital market. With the development of the capital market in China, M&A, as one of the most important measure for the re-allocation of social resource, has occupied important place and will play an increasingly important role. Under the special background of property-right-system reform, the performance of the listed corporation becomes one of the matters focused by the public and the professionals. Based on the research of the forerunner in this field, drawing lessons from the results of researches in China and foreign countries, this paper, using the methods that combine normative analysis with positive analysis, builds up cash-flow index system and non-cash-flow index system to compute the comprehensive mark with mean factor procedure. Using TTEST procedure to test the change after M&A, this paper tries to appraise the performance of M&A objectively.The content of this paper comprises three sections:In the first section, the author introduces the argument for the effect of listed corporation M&A, and evaluates the related research briefly.In the second section, the author builds up two different performance evaluation systems based on cash flow indexes and non- cash flow indexes respectively to calculate the comprehensive mark of M&A and then use the TTEST procedure to test the changes after M&A for the purpose of evaluating the effect of M&A performance. In this section analysis is made from three different angles: Firstly, the author analyzed the total samples' changes after M&A comprehensively; Secondly, the author divided the samples into two sorts according to whether the actor corporation and the targeted corporation are located in the same district and try to illuminate the local government's role in M&A; Finally, the author describe the difference among the performance of the corporation which made different types of M&A.In the third section, the author draws conclusions and analyzes the causesto propose advices for the government and the related company.The result of synthetic analysis shows that the performance evaluated by the non-cash flow index declined after M&A but the one which is evaluated by the cash flow index is improved. The reason is probably that the listed corporation manipulates profit unlawfully. The information carried by the cash flow index is more credible, so the author drew the conclusion that the listed company's performance is improved after M&A.Taking in consider the special historical and institutional background of the state-owned company reform in china, the author think that it is reasonable to analyze the government's role in M&A. Because the data about government's intervention is in-acceptable, it is reasonable to consider whether the actor company and targeted company are located in the same district as a substitute of whether the local government intervened in M&A.The result shows the M&A that the actor and the targeted company located in the same district is efficient but the one that the actor company and the targeted company located in different districts is inefficient. This conclusion illustrates the fact that, from the angle of the actor company, the local government took an active role in M&A. This conclusion is contrary to the prevail view point of the related professionals. The author think that the benefit that the actor gained is not from the improvement of the re-allocation of resources. The author involved the local government in the process of M&A in order to explain the institutional reason for the improvement of the performance of the actor corporation.The research in different M&A type discovers that the horizontal merger achieved the best efficiency; The vertical one is ok. The conglomerate type is the poorest one.After analyzing the reason for the conclusion, this paper proposes some policy: the government should play an active role in M&A to improve the efficiency of resource allocation, avoiding suffering from the loss of resource allocation efficiency; The listed corporation should not step in newrealm aimlessly.