Empirical Study On The Performance Of M&A Of Chinese Listed Companies

Mergers and Acquisitions(M&A), being effective economic instruments to optimize the allocation of resources, improve economic efficiency and achieve economies of scale, has extensively been accepted by company policymakers. The main purpose of this paper is establishing the performance of listed companies M&A evaluation system, analyzing the existing problems of listed companies M&A, and providing a basis for improving the performance of listed companies M&A on the basis of theoritical analysis.This paper presents to judge the performances of M&A of Chinese Listed Companies through comparing their changes in Comprehensive Profitability. Then an all-around evaluating system of financial indicators is built to match it and avoid the effects because of the intentional control on profit and loss of Chinese Listed Companies. Finally, the performances of M&A of Chinese Listed Companies of 2002 are analyzed by using a score function with the Factor Analysis method from Statistical Analysis. Generally, M&A do not make any effect on the operation of Chinese Listed Companies because of the lack of proper strategic planning or the neglect of integration after M&A. Detailedly, Horizontal M&A makes Chinese Listed Companies slightly stronger but Conglomerate M&A goes opposite, which accords with the theory of M&A basically. Pay-transfer make listed companies worse, but they are more successful than free-transfer.At last, the author gives some suggestions for improving the acquisition performance of Chinese listed companies.