Primarily Research On Efficiency Of Financial Merger And Acquisition

In the 1990s, the global financial industry has occurred a profound change which impelled by the international banking industry M&A, the change has sustained until now. The scale and the amount bank of M&A are huge, with the same business and cross-industry, cross-border M&A co-exist. The wave of bank M&A increases the concentration rate, promotes the improvement of international capital structure and expands the scale of international capital flows, meanwhile, competition among banks also occurs in a new brand platform. At the turn of the century this wave of M&A, the banks is not only in order to meet the needs of global economic integration, which are tactical arrangements of competitiveness and profitability, but also to make a strategic arrangement to seize the international financial market in next century. It is believed that the banking M&A can bring economies scale and scope economic effects, management and financial synergy effects, and other positive economic benefits. However, large numbers of empirical results show that a lot of financial institutions have not been obtained the expected value and satisfactory performance from M&A, the negative effects of M&A are increasingly arisen: inducing the excess monopoly, affecting the operation of the market efficiency, increase the risk and the number of unemployed. These failures reflect non-efficiency issues in the process of M&A. Our country is in the M&A wave, research on the efficiency of the financial M&A and how to take positive measures to avoid non-efficiency is of great significance practically. This paper would analyze the outstanding achievements of M&A from both positive and negative aspects and give some suggestions.This paper study the financial M&A in free competition market from a macro perspective with game theory methods, including transactions with little value, meanwhile abandoning some of the transactions with large value because of the interests of both M&A. Under the assumption of restricting both sides of the M&A's strategy, the ultimate outcome of the game is improved, ruling out the smaller value transactions and preserving the large value transactions. We can draw that, if the government or the financial intermediaries hold in the two sides of the M&A's strategy, the efficiency of financial M&A can be optimized; Government and financial intermediaries can optimize the policy, because there is a theory location between the government and the market and on this location efficiency of the M&A's can be improved, the social resources and economic benefits can be saved.