Empirical Study On The Effect Of M&A Payment-Methods For Chinese Listed Companies

In Merger and Acquisition (M&A) events, design and selection of payment-method relate with the evaluation of transfer price and choice of financing strategy. Besides, it is one of the most important factors to put the M&A exchange over. Based on this background, this thesis puts the emphasis on the empirical study on the payment-method effect in M&A of the listed companies in China, answering the question "Whether different payment-methods can lead to different effects for the listed companies?", so as to each payment-method said can be used appropriately in the design of M&A.Based on the actual status, the thesis firstly redefines the payment-methods in China and then selects M&A events of Chinese listed companies in 2004 and 2005 as its research object, classifies those events into five groups according to the payment-methods and their active or positive roles in the transactions. Finally, 44 biomedicine listed companies which are active parties are selected as the research swatches. By means of event study, the thesis analyzes the impacts on market performance of listed companies by the different payment methods in M&A, following draws the research results: ①There are notable abnormal returns for the research swatches, which means that using the event method to measure M&A performance is feasible in China;②Different payment-methods have different market performances, the credit payment with the highest abnormal return, whereafter the stock payment, the cash payment, the debt-taken payment, and the asset-exchanging payment with the lowest abnormal return.Based on the studied and explanations above, the thesis gives advises to the active investors in the end.