The Research On Performances Discrepancy Of Mergers And Acquisitions Of Listed State-owned Enterprises By Foreign Capital And Private Capital

In the past 3 years, the environment of the M&A market, law as well as policy has changed substantially. With the further development of Chinese state-owned enterprises, the performance evaluation of M&A of state-owned enterprises have come into focus, which really deserves our attention. This article targets two major problems: Does M&A by foreign capital really excel M&A by private capital? Does the tender really impose a significant influence on the M&A performance of the listed state-owned enterprises? In order to probe into these two problems, this article chooses the representative M&A cases both by foreign capital and private capital taking place in Shanghai and Shenzhen stock exchanges for the period 2003-2004 as samples and develops a performance evaluation system utilizing 6 different indexes, including turnover of current assets ,turnover of total assets, return on equity ratio, earning per share, maintain and increase rate of capital and growth rate of total assets. Thus, builds up a synthetic score function to carry out empirical analysis of M&A of enterprises. The result of the research indicates that anticipated success can not be obtained through M&A regardless of its capital source. Foreign capital does not excel private one in M&A, which leads us to arrive at the conclusion that the tender is not conspicuously correlated with the performance of M&A of the listed state-owned enterprises and hardly has influence on it. And, at the end of this article, some questions, together with suggestions are raised to evoke more profound thinking.