Market Response To Takeover And The Impact Upon The Corporate Performances

Whether takeover can bring the companies excess incomes is an important issue which many scholars and entrepreneurs focus on. But different people have different opinions. Generally speaking, there are two methods to measure the excess incomes, one is judging the response of stock market with CAR, and the other is calculating the corporate performance change with the designed financial norm or the established financial norm system.In order to come to a more reasonable conclusion, this article utilizes two different methods to analyze the market response to takeover and the corporate performance change. We find out the results of the two methods can be both proved that takeover brings the companies excess incomes in the short term. But the match model and the change model of the second method didn't bring the same outcomes on the abnormal operating performances in the long term. Moreover, the two methods both testify the companies which restructured assets can get the plus benefits on the declared day. However, they can't be consistent about the impact of the four forms of assets restructuring to the companies in the short term and the long term.The innovation points of this article are as follows:We pay more attention on the post-takeover market response and performance change, instead of only testifying the pre-takeover performance. It can make our results more scientific. And we also use two methods to analyze it: measuring the market response with CAR and calculating and corporate performances with the established financial norm system.Certainly, this article also has some limitations, just like the number of the data is not large enough; the financial norms we used may be a little subjective, etc.