| As an important means for firms to expand and achieve strategic development, foreign Merger and Acquisition (M&A) are becoming more and more popular with firms all over the world. After its entry into the WTO, China has provided foreign investors with favorable prospects of economic development and superior investment environment. All these have made China a new focus of attention on the market of foreign M&A. Under this background, it is of practical significance to study the current situation of the development and performance of foreign M&A in China. This article aims to abundant foreign M&A theory to a certain extent, and provides references to how to effectively deal with the problems arising from the foreign M&A process.Firstly, this paper expounds the theoretical basis of performance study on foreign M&A, in order to provide a theoretical reference to the following empirical analysis. Secondly, it collects all the foreign M&A cases of China's listed companies since M&A appeared in China's capital market (1995.1.1-2006.12.31), and summarizes the characteristics of foreign M&A in China and analyzes the contributing factors. Then, having a standpoint of China's listed companies, by using finance performance evaluation method and establishing a suitable performance evaluation model, it gives an empirical analysis on the overall performance and long-term performance of foreign M&A of listed companies in China.Finally, the article gives out its conclusion as below: foreign M&A can improve the overall performance of listed companies as well as the long-term performance. In the light of the problems existing in the developing process of foreign M&A, the article raises some countermeasures, including: the government should fully play its role as the guide and supervisor; accelerate the standardization of the securities market and the legal system construction; pay enough attention on the integration after foreign M&A and the formation of synergies. |
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