The Study On Stock Exchange Merger & Acquisition Of Chinese Listed Companies, Cause And Effect

Along with the opening-up and development of the economy in our country, corporation'samount of M&A (merger and acquisition) kept increasing in the past several decades, as well asstock exchange M&A as one model has also been used in China for almost ten years. SinceQinghua Eletrical Co. bartered shares of Luying Electrical Co. in 1998, there were more than 10listed companies involved in stock replacement annexation, and there are almost ten newcompanies from 2006 to Mar 2007. In a word, while 'one share, one vote' reformation isapproaching the destination and a series of law and regulations are drafted, stock exchange M&Ais expected to be used more and more widely.The theory investigation on causes pushing enterprises proceeding M&A has been oneimportant part for academic circles. All western research could be divided into three typies, Newclassical economics, Agent theory, and New Institution economics. Because of the specialenvironment and institution of our country, the research in China is mainly carried out from twoangles, the government and enterprises. The paper is based on the above theory, and tries todiscuss causes of stock exchange M&A of the listed companies in our country according to threedifferent periods. The paper applies some related finance models to analyze profitability,development ability, risk level of those companies, and analyze the real causes of the stockexchange M&A of these companies.The whole article combines theories and practice tries closely, testifies each other, thenconcludes the common causes of stock exchange M&A, at last the paper raises suggestion onthis.