An Empirical Study On Performance Of Chinese Listed Companies Which Hapened M&A

At present, the continuous emergence of enterprise merger at home and abroad certainly expands the scale of enterprise rapidly. Actually, if it can increase the income of shareholdes, create benefits for the enterprise, bring value for the community? Since 1993, Listed companies have participated in a growing number of mergers and acquisitions restructuring in China. Do these mergers and acquisitions really have improved the company's operating performance,or a zero-sum game at the capital markets? These problems can be attributed to the inspection on the mergers and acquisitions. With the wave of mergers and acquisitions of listed companies, such problems have attracted the attention of more and more enterprises and scholors. They studied the performances of listed companies merge and acquisition from multi-angle. But inconsistent conclusions were reched.Listed companies which hapened M&A (merge and acquisition) in 2003 in China were choosed as samples for observation in this paper. And it aims to investigate the performances of listed companies merged by different industries Through empirical analysis method long-term performance change of the company which happened cross-industry mergers and acquisitions in 2003was studied by choosing two financial targets. According to the conclusions of the performance change, enterprises scale was inspected. In order to establish the scale of business, adjust the economic structure, change the mode of economic growth and improve the company's performance, resonable suggestions were proposed.Lengthways scale expansion of enterprises means that the internal production processes is elogating, the scope of business is expanding. It is likely to bring about diseconomy scale(diseconomy lengthways scale of the enterprises). Meanwhile the production scope expand after the listed companies occuring cross-industry mergers and acquisitions. If the performance decreased after M&A, it shows that the larger the business scope, the poorer the performance.After empirical analysis, conclusions obtained as follows: cross-industry mergers and acquisitions of listed companies has brought negative impact on the long-term performance and it proved the proposition that the Lengthways scale of the enterprise is uneconomical. In conclusion, it is thought that we should control the business scope appropriately and boost the core competitiveness in order to enhance the total value of the community and enhance their business performance.