Empirical Study On The Listed Corporations' M&A Effect In China

In the last decade, merger and acquisition (M&A) of enterprises has been developing rapidly in our country because the business enterprise reform turns deeply, the adjustment of the industrial structure, international compete turning worse and so on. What's effect M&A activities can make has been vigorously argued in academe since 1990s when the M&A tide has surged in China. In the abstract view, enterprise merger and acquisition has active contribution in regard to optimized allocation of resources, realized effect of scale economics, depressed transaction cost, decentralized operation venture, and promoted industrial structure transition and upgrade. But the listed corporations' M&A is a very complicated economic activity, especially in the special economic environment in China, the complexity and variety combinations make the M&A effect be limited. So to study M&A effects and the influence factors and put forward some reasonable suggestion is imminent and will make a great sense.According to a set of comprehensive index that can reflect the listed corporations' accomplishment, using the factor analysis method and constructing a general function that could weigh the enterprises' performance, the thesis study the listed corporations' M&A effect of the buyers. Through the whole empirical test, we find the performance declined after M&A in the listed corporations. In the grouping test, we find that after horizontal M&A, the listed corporations' performance declined, but it obviously presents an increasing trend year by year. The performance which the listed corporation has practiced vertical M&A is the best. Comparing with the performance before the M&A, the subsequent is better, and the rising range become bigger and bigger. The performance of conglomerate M&A is more complicated: the accomplishment descends at first and then rise andthen descends again, which having a descending trend. From the empirical test of different profession we find that the M&A effect of food profession is the best, but which has a lightly descending trend. The effect of medicine is no so good, but it presents an up-trend. The transportation and warehouse profession's effect looks more complicated, which present a descendent trend on the whole and the descending is visible.