The Finance Efficiency Of M&A In List Corporations

With the gradual establishment of china's market economy and the perfection of capital market, Mergers and Acquisitions have become the important means of enterprises capital operation. The main purpose of M&A is to make the vale of company to be maximization. But the performance of M&A is still a controversy. The controversy focus on whether the share price is affected and the real economic benefit is improved after M&A. These questions cannot be answered only depending on the analysis of finance efficiency. So how to evaluate Finance efficiency become more and more important. In my thesis, firstly, the conception, the sort and the basic theories of M&A are introduced. Then the integrating of finance in M&A is summarized. Finally, the demonstration analysis is finished using the finance data method for the 84 samples of M&A from 1999-2001, which happened among the listed companies of China. And the conclusion is that, finance efficiency doesn't change markedly in the year of M&A and improves next year. Then finance efficiency declines in the three year after M&A. As a whole, M&A is not successful in the market and brings a growth in the enterprises' operation benefit. Judged by the sorts of M&A, the short-run performance of Vertical merger and acquisition is at the lever of average. And long-run performance of Vertical merger and acquisition improves stable. The short-run performance of Conglomerate merger and acquisition is the best of these three sorts of M&A. And the performance of Horizontal merger and acquisition is bad. At last, my thesis gives some suggestions about how to improve finance efficiency of M&A.