Research On Merger And Acquisitions System Obstacle In China

In this paper, value added is studied from the point of view of merger and acquisitions of corporations, that is, Pareto improvements from a macro point of view, and fortune creation from a micro point of view.Viewing the whole course of allocation improvements by merger and acquisitions of corporations, the deal is the logic start. With the results of Pareto improvements by merger and acquisitions of corporations in completed capital markets, factors of asymmetry information and agent cost are considered, and introduced into the model step by step. In this paper, the situations are studied and analyses by case as how M&A of corporations promoting the allocation efficiency. Suggestions to policy making are presented.It is during the integration following the merger and acquisitions of corporations when value is created and value added observed. The mainstream in this field often stress one sphere of the whole process. The problem can no way be solved totally and correctly without the theory of labor value by Marx, who explained the value creation by social necessary labor time, including active labor and capitalized labor, and the value decided by accepted average labor time. The particular producing is judged by the average producing in the whole economy. The relation between the private and public production decides the value added of a definite firm. Improving the production is the essence of merger and acquisitions of corporations. In this paper, the inner mechanism is analyzed in a further degree as to how to carry out the value creation by merger and acquisitions of corporations.In practical merger and acquisitions of corporations, the trade off and evaluation methods is studied by financial models of mimic firm operating. In the theories of corporate finance, the value added by merger and acquisitions of corporations is reflected by the marked value and performance of the firm. In this paper, some finance theory models are studied as follows, Fisher, Modigliani and Miller, real option and EVA. It is a systematic research. Economic value added is stressed in this paper, since it is the recent and nearest approach. It means a great deal both theoretically and practically.To apply normal approaches in the study of the practicing of merger and acquisitions of listed corporations in China is the purpose of this paper. First, the factor of system transforming is considered. It influences the Chinese capital market, as well as the merger and acquisitions of corporations. Some obstacles and drawbacks are of systematic reasons. Secondly, a further study of inducing factors in the X efficiency of listed corporation is analyzed. It is the potential system economic rent that induces various unreasonable phenomenon. A compound way of approaches is applied here including event study, accounting study, industry life circle model and case study. Lastly, suggestions for policy making are presented, from normalization and systemization point of view.