Study On The Performance Of M & A Of Chinese Listed Companies Under The Financial Crisis

Since the early 1990s, Shanghai stock exchange and shenzhen stock exchange, set up sequentially in China, providing a platform for M&A performance. The M&A of listed companies grew from baby to adult, gradually becomes the focus of securities market--the M&A has become the important means of rapid development for domestic enterprises. The 2008 financial crisis was the largest recession for developed countries since World War II. Developing countries also suffered great impact: large amount of enterprises were greatly troubled; certain asset severely undervalued. At the same time, governments have issued the economic stimulus package, supporting their enterprise merger and reorganization. In this background, the new M&A wave swept across China. But how the financial crises affect the enterprise M&A? Whether merger had created value under the financial crisis? These are crucial question for the development of China's capital market which worth deep research.The first chapter presented the research background and significance, reviewed domestic and international research condition and proposed the methods and the main content of the paper. Chapter II studied the basic meaning of M&A, gave a scientific definition of the related concepts, and discussed the other motives for M&A, to lay the foundation for later study. Chapter III reviewed the financial crisis, and analyzed their impact of M&A, showed that under financial crisis, the monetary policy and cheap assets have become the breeding grounds for M&A. Chapter IV determined the sample selection, model design. The paper selected 67 companies in Shanghai and Shenzhen listed companies as sample, and do classification according to the market, time and type. Chapter five did empirical analysis using event-study methods, and verified the results. Empirical results show that M&A in the financial crisis did not achieve the desired results, significant performance showed just a few days among the event. At the same time, according to the classification of the cumulative abnormal returns, the performance of companies in Shenzhen was significantly greater than the listed companies in Shanghai, the occurrence of M&A in the second half performance was significantly greater than in the first half, the manufacturing sector was significantly higher than non-manufacturing, indicating that the size of the company, the timing of M&A, the type of the companies are all important factors influencing the performance of M&A. At the same time, according to the cumulative abnormal returns from the trend, the cumulative surplus began showing a rising trend before the event publication, suggesting that there may be insider trading events. Chapter six was a summary of the full text, recommendations were made. This paper argued that at the government level, should improve the market system and related laws and regulations, strengthen supervision on insider trading; at the enterprise level, we should develop strategic plans, strengthen the M&A investigations and feasibility studies, select the favorable M&A opportunities, and strengthen M&A integration work.