| Businesses can not only operate through products, but also rely on the capital to grow and develop. M & A is the main link of the securities market allocation of resources, and M & A market efficiency is of the utmost importance to achieve the fundamental functions of capital market's effective allocation of resources. From a macro level, M & A market efficiency is the starting point and guiding ideology for the relevant government departments formulating policies or guiding the practice. From the micro-level, M & A market efficiency is both the premise of the decision-making and he basis for investors correctly grasp the securities market merger and acquisition activity.This paper studies M & A market efficiency of listed companies, mainly based on comparative analysis of M & A market efficiency before and after the share-trading reform, then proposes my view of some of the problems existing in the China's M & A market of listed companies in the and how to address these issues.This paper is divided into five parts:Introduction says the meaning of the article, the purpose of the study, research methods, empirical literature of M & A market efficiency were reviewed from both domestic and international. In the West, there are many researches of the reaction of the market; especially focusing on the extraordinary income the M & A will give the acquired company and the target company's investors. In addition, some researchers divided the samples there in accordance with the feathers that can be observed, and compared different types of samples. As China's wave of mergers and acquisitions on the end of the century and the emergence of the rapid development of the securities market, many domestic literatures on the M & A market efficiency emerged. This paper cards some representative theories.The second chapter on the theory of M & A related study, first of all define the concept of mergers and acquisitions, followed by the theory of mergers and acquisitions of the West, these theories focus on the causes of the problem and the efficiency of M & A. Including a synergistic effect theory, theory of market forces, the agency theory, information and signal theory. It should be said that the reaction to the company's M & A news is shown by the changes in stock price, and that stock prices reflect the company's value, so in the second chapter introduces the theories on the restructuring through mergers and acquisitions for the company to increase the value.Next major analyze the status and the existing problems of mergers and acquisitions of listed companies in China. This paper divides the history of M & A of listed companies in China's into four phases: the initial exploration, development, standardized development, reform and development. In China, there are many problems in a listed company mergers and acquisitions practice, such as M & A target is not clear, operation is not standardized, administrative intervention, and many are involved in too many system constraints. In the background of the split share structure, M & A through the secondary market has become very difficult, even if getting the control of the listed company by agreement changes of share price have little impact to the company's non-tradable shareholders. So many non-tradable shareholders with control emptied the listed companies. Special institutional and market factors have led to a lot of inefficiency or even invalid merger. Understanding of mergers and acquisitions of listed companies by the existing problems, and analysis of the formation mechanism of these issues, has a certain significance of research to the mergers and acquisitions market efficiency.Chapter IV is part of empirical research; case studies are used in this paper, chooses individually in the years 2003-2005 and 2005-2008, 60 mergers and acquisitions of listed companies in empirical research. The results showed that: before the announcement day in the [-10, -3] window, before the split share structure reform, 95 percent of the significant level, (all samples) CAR through the test. After the split share structure reform, 99 percent of the significant level, (all samples) CAR through testing, showing that the market reacts in advance, stock market reacts even more significant after the reform. In the window period [2,2] the period, both before and after the reform, the company received CAR, but not significantly. After the announcement day in the [3,10] window, before the reform, sample companies have significantly negative wealth effect. After the reform, sample companies have significantly positive wealth effect. This paper gives corresponding explanations China's combined with characteristics of market before and after the split share structure reform.Finally, summers up the results of empirical research, and in a targeted manner proposes solutions and policy recommendations. |
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