| Through the means of M&A, firms expanded their operations, concentrated capital, and achieved the goal of external growth. With the development of Chinese capital market, the mergers and acquisitions among listed companies has been gradually increasing in recent years in China. Theorists and empiricists pay much attention to research on the performance of M & A. M &A brings the fluctuation of the stock price to both target companies and acquiring firms, as well as the corresponding changes to the value of companies.The analysis starts from the theoretical basis of M&A. This paper gives a comprehensive summary of the company's M&A theory of motivation, and gives a detailed description of empirical analysis state of internal and external use of the case studies method and financial index method, meanwhile makes some comments on the practicality of the two methods. The event study method is adopted in the paper for empirical analysis; we get the infection of the M&A incident to the value of the companies. The main conclusions are obtained: Firstly, M&A does not bring wealth to the acquiring companies; Secondly, the M & A case brings some benefits to the target company; Thirdly the size of benefit from M&A for target firms has relationship with the property industry, the type of controlling shareholder, as well as the type of M & A; Finally, The M&A information may leaks before publication.As the lack of performance for the Chinese M&A companies, some suggestions are made in this article. First of all a good market order should be established in China through formulating relevant laws. Then, strict regulation for the information disclosure of listed companies should be set up, and Chinese investment banking industry should be developed. |
