A Positive Study On Hostile Takeover Performance Of Listed Companies Inside China

Hostile takeover has been into the sight of Chinese enterprise management since the 1990s.The first case of it—mergence of YanZhong Enterprise in ShangHai by BaoAn Company in ShenZhen caused a lot of attention theoretically and practically, and from then on most listed companies increasingly attach much importance to this term. In recent years, many new laws and regulations about securities have come into force, moreover the latest Measures to administer Merger & Acquisition of Listed Company (consultation for advices), carried into execution in May 23rd 2006, gives a rather drive to hostile takeover.Nowadays, while much of researches as to hostile takeover inside China are cases analysis and exertion of anti-merger measures, few positive studies go deep into it from the point of the buyers. This paper collects the cases from 1993 to 2006 involving listed companies and chooses valid ones with filtration of them to work over the financial performance after their hostile takeover from the point of the buyers. The Financial Indexes System is adopted and conclusions about financial performance are drawn out of demonstration through single financial index comparison and multi-financial indexes comparison.Here are the conclusions drawn from demonstration of this paper. Hostile takeover is underway inside China and as far as the samples existed now concerned, it can not completely determine the financial performance of buyers of M&A.Hostile takeover has holistically plus efficiency, but the distinctness and trend of this efficiency are not obvious. Different samples vary and risk fluctuates greatly; cautious attitude should be taken. Hostile takeover is an efficient mechanism of exterior supervising as a whole. It will never be taken or rejected easily, but should be alternatively used according to external situation outside.The innovations of this paper are as follows. Adopt statistical method to carry through a financial performance demonstration of hostile takeover from the point of buyers of M&A and make a proof-test of performance endurance, which avoids disfigurement of difference of samples in ago financial performance researches, and enrich the current M&A performance study system.