| Merger & acquisition has been the focus of the practice and the theory in every country. With the state property optimized through financial market, withdraw of the state owned property has achieved a remarkable progress, therefore, the trend that a great deal of state owned property would be the objective of M&A is taking place. M&A activities are becoming the priority of the research on the M&A as it is likely to influence the stock value. The transition of the state owned property is full of various unreasonable, short-sighted, and government-led causes. The influence of M&A have on the two parties of M&A is ready to be testified.The foreign academic field generally conducts the study on the impact of M&A on the stockholder value through case study method. Bruner found that the target company's stoke price will achieve a obvious increase in the extra revenue rate. While the domestic scholars M&A and reorganization will create the value of the stock, but it cast a negative influence on the merged company stakeholders. The existing study draws conclusions with the western classic method to analyze a great number of cases. The case analysis demands highly the stoke price. However, in the M&A cases, only one party is listed company, which causes the incompleteness of the stock price as using the case analysis.The paper is adopting the case analysis method to analyze, test and refer to the long-term qualitative index through calculating individual company's CAR and CA and its influence on the stock value.The paper respectively investigates the M&A cases taking place between the listed companies in China's financial market in order to deduce the method. Through using the classic three types of normal revenue rate calculation methods, and explore various CAR and CAC change to conclude the influence of M&A on the stock value of China. According to the western classic theory, latest research outcome and existing result of our country, the author produces a few policy recommendations. |
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