Study On The Effect Of Control Transfers On Chinese Listed Companies Performance

The Merger & Acquisition (M&A) of enterprises is one of the initiative elements to know their marketing efficiency in the capital market. Thousands of M&A events have been continually emerging in the recent 10 years, and become more and more popular in Chinese Security Market. The M&A becomes the major means for the domestic enterprises, especially the listed companies, to develop fast. Owing to the complication and variety of M&A and the different perspectives, research methods and samples applied by the researchers home and abroad, no agreement has been reached on whether M&A will be facilitated to improve the operating performance of companies or not.In this dissertation, the basic theories of control transfer and operating performance are introduced first. Then, the motivation and major influential factors of control transfer of companies are analyzed based on the specific system background of control transfer to find out how the control transfer interest transfers and the motivation distortion in the control transfer of listed companies in China. Furthermore, the author studies the samples of 188 listed companies which have experienced control transfers in A-share market in Shanghai and Shenzhen from the year of 2001 to 2003. An empirical study is conducted to analyze the changes of operating performances before and after control transfers through the factor analysis method, and an econometrical model is established based on the analysis to do a multiple linear regression to further study how the structure of stock ownership influences the control transfers performance of companies.The result of study shows that in general, the control transfers performances of listed companies are not significantly improved. The performances of listed companies which have experienced the non-compensatory transfer of stock ownership are not improved but deteriorated slightly, while the control transfer performances of the companies which experienced the compensatory control transfers are significantly improved. As far as the influence on the control transfer performance by the stock ownership structure is concerned, the proportions of circulating A-share and the shares held by the advanced managers do not significantly influence the performance of companies. They are not efficient enough. The proportions of state-owned shares, legal person shares and shares held by the leading shareholder, and the concentration ratio of...