Empirical Research On The Performance Of Mergers And Acquisitions Of China's Shang Hai Listed Companies

As an effective means of resource allocation, Merger & Acquisition has been used by more and more enterprises, and the quantity of enterprise merger and acquisitions is many, the scale is more and more big. It has played an important role to the economic of a country even the whole word. So it can be say that the development history of western industry actually is the development history of the enterprise merger and acquisitions. Nowadays, M&A activities, especially the M&A performance that may bring to those companies involved, have become a topic of common concern and also the hot issue in academic research. Foreign scholars have conducted a lot of studies on M&A performance since 50s-60s of the 20`h century and formed some methods and conclusions. But China's securities market is still at the developing stage, the M&A activities of listed companies in our country vary greatly in the operating mechanism, ownership structure and legal environment comparing with that of Western countries. Owing to the particularity of M&A activities of Chinese listed companies, the research related will be of great theoretical value and practical significance as well.The paper is based on research ideas, such as theory, empirical testing, and countermeasure suggestions. First introduced to the basic concepts of mergers and acquisitions, and summarized the domestic and foreign scholars' theoretical achievements on the performance of mergers and acquisitions as well as some research methods, and the influence factors of M&A performance. Then use financial ratios to evaluate law, through the factor-analysis methodology to form the comprehensive grading model to evaluate the performance of listed companies. The empirical study analyzes 37 sample Shang hai listed companies that made M&A in 2005 and then studies the changes of operating performance before and after M&A ,so, resulting the performance level of sampling companies mergers and acquisitions. Finally, According to the empirical analysis and the situation of our country, indicate the measure of improving M&A performance.