A Study On The Performance Of Foreign M & A Of Chinese Listed Company Based On EVA Decomposition Index System

Since the mid-20th century, the cross-border M﹠A has grown rapidly. It not only became a new wave of the M﹠A all over the world, but also the main method of foreign direct investment. With the accede to WTO and policy about foreign capital relaxed, foreign M﹠A began to rise gradually and became the hotspot in our securities market. However, has foreign M & A really improved the economic performance of the listed companies in China? Or from what areas it improved the performance? From this starting point, the author makes a systematic empirical research about economic performance of the foreign M﹠A of the listed companies in China.In this paper, the author uses a set of EVA decomposition index system which can comprehensively reflect the value creation in M﹠A of the listed companies. On this basis, with principal component analysis, this paper makes an empirical study about the performance of foreign M﹠A. The results show that: Firstly, from the changes of the comprehensive scores of the samples of foreign M﹠A, in the short-term performances have been repeated, but in the long term, the comprehensive scores have improved; Secondly, the results of the EVA decomposition index show that the value created or destroyed of the listed companies is mainly from the operating EVA, as well as business tax avoidance EVA; Finally, the study results of the five micro-factors about foreign M & A show that correlation,acquisition mode and the management of the pre-merger performance of listed companies make the impact of M & A performance remarkable.At the end of this paper, on the basis of analyzing the empirical results, the author provides some suggestions for the regulators as well as the listed companies in china about how to deal with the foreign M&A.