Empirical Research On The Performance Of Foreign Capital Mergers And Acquisitions Of Chinese Companies

In recent years, with China joining in WTO, the forms of foreign Mergers and Acquisitions (M&A) become multiple and the scope of foreign M&A is expanding. With the issue of a series of important rule of law and regulation about china's capital market opening to foreign capital,The institutional barriers of foreign capital merging the listed company in China's capital market have been eliminated; With the boom of Foreign capital M&A, it has become a continual hot topic in china's capital market.In the homeland, enterprises, especially a lot of state-owned enterprises are with the background of backward technique, bad benefit, and heavy debt burden. However, multinational corporations have advanced technology, mature administration pattern, effective performance evaluation system, and perfect company management structure. Therefore, in theory, foreign capital participate in civil enterprises'reorganization can improve the whole management level of state-owned enterprises, intensify assets competition. And it is beneficial to the rise of our country industry horizontal in the meantime. In fact, what does foreign capital M&A bring about to our country? The debate on whether the performance of M&A is good or not has never stopped all over the world, different economist holds different ideas. The relevant studies on the performance of foreign capital M&A in China, however, still lack enough empirical studies.According to the analysis of research actuality on thesis mentioned above, then compares and analyzes on the current popular performance evaluation approach combining the relative foreign capital M&A theory, and then creatively combines index-rate of economic value added (REVA) and index-rate of market value added (RMVA) together, so that the performance is evaluated of the listed companies which are merged from 2002 to 2004. Then the impact of M&A mode over index-rate of economic value added and index-rate of market value added is analyses as well as the impact of stock structure over them. At last, some results are got such as the short effect of foreign capital M&A is not good, but the long effect is much conspicuous. At the end of the paper, some policy suggestions are put forward according to some problems which exist in foreign capital M&A at present, so that resource is integrated by the most use of foreign capital, and the purpose of enhancing the entire performance of foreign capital M&A is reached.