Preliminary Study On M&A Directions Of Listed Companies

Since the stock exchange market established in China, the M&A of Listed Companies rises rapidly, but the principles of stock right split make a harsh time to its development and also the reunite of those companies.This paper, based on the data for the M&A of Listed Companies from 2002to2005, analyzed the characteristics of their M&A directions on condition of stock right split. Firstly, it analyzes the trends of Chinese M&A market through three parts, they are: dimensions, geographical distributions and industrial distributions of acquisition events. Thereafter, based on four dimensionalities as industrial, geographical, dimensions and proficient ability of enterprises, it advocates a hypothesis which believes consistency of M&A directions. Finally, it results in a conclusion view of the M&A market and the explanation of its feasibilities. Through the hypothesis of the M&A consistency, we could to some dimensions see consistency in some of our Listed Companies and the weak or inconsistencies some other dimensions.It could be analyzed by the Organization's Inertia and Principal-agent theories for the consistency of M&A directions however, it might be the immature of Chinese market that incur the weak-consistency and inconsistencies.