The Study On The Performances Of Chinese Listed Companies After M&A By Foreign Or Domestic Capital Enterprises

As the development of market economy in China, there are more and more M&A activities of our domestic enterprises, especially our listed companies. As an effective means to accelerate the development of enterprises, M&A is becoming one of the important strategies for the development and expansion of Chinese enterprises, the number of research on M&A of listed companies in academic field is gradually increasing. From the research on the asset reorganization of Chinese listed companies to foreign M&A of listed companies, basically the framework of research and the staged features of the development of M&A market are consistent. However, through the review of studies and papers, I found that previous studies are targeted at only one particular type of M&A, and there are few comparative studies on different M&A major performers-the comparative study on corporate performance of M&A, with both domestic and foreign capital enterprises as major M&A performers and Chinese listed companies as M&A targets. Therefore, this paper focuses on the following two problems: Are there any differences in terms of enterprise performance after the M&A from these two different M&A major subjects? Is there some improvement regarding the performance of our listed companies after the M&A of our listed companies from foreign and domestic enterprises?With the two types of M&A events as samples, namely M&A major performers are domestic capital enterprises and foreign capital enterprises respectively, with the year before the M&A, the year when the M&A took place, the year right after the M&A, and the two consecutive years right after the M&A as research periods, this paper uses Factor Analysis to establish the indicator system of financial performance and obtain M&A performance score, and analyzes the impact and difference of the long-term corporate performance of listed companies of the two types of M&A by the use of wilcoxon rank-sum test and other statistical methods. This research indicates that the performance of our listed companies acquired by foreign enterprises declined in the year of M&A and the following year, but improved in the third year, which generally suggests that the M&A by foreign enterprises didn't bring remarkable improvement to the performance of listed companies. However, if we look at the research sample of M&A of listed companies by domestic capital enterprises, we will find that the performance of listed companies acquired by domestic capital enterprises improved in the year of the M&A and declined in the next year, but in the third year there was an obvious improvement in their performance compared with that of the year before the M&A and that of the year when M&A took place. This improvement is of significant importance in terms of statistics, for this indicates that the M&A of listed companies by our domestic capital companies are generally successful. Based the research results of this paper, I conclude that under certain circumstances the M&A by domestic capital enterprises is more efficient than the M&A by foreign capital enterprises.