The Research On Stock Exchange M&A Performance In The Chinese List Companies

Stock exchange M&A has been widely used in the integration of the international capital markets, but in China, stock exchange mergers has only a short history of eight years. After 2007 the Reform of non-tradable Shares in China. There are more and more stock exchange mergers. Thus, the paper researches the stock exchange M&A systematically to direct concrete cases. According to a set of comprehensive index that can reflect the listed corporations'accomplishment, using the factor analysis method and constructing a general function that could weigh the enterprises'performance, the thesis study the listed corporations'stock exchange M&A effect of the buyers from 1998 to 2007. Through the whole empirical test, we find the performance declined after M&A in the listed corporations, however, there are big differences between the companies in different periods.Its main points are:Chapter 1 explains the fundamental theories of M&A, including the merger and acquisition. Stock exchange M&A that is pay in stock is a form of M&A. Compared with cash M&A and mixed M&A, it is conclude the advantages of stock exchange M&A. First financial pressure in the M&A is relieved compared with the cash M&A, so the stock exchange M&A is not defined by the M&A scale. Second shareholders of the acquired business automatically converted into the new company's shareholders, so they and the buyers combined into a community of interest. Third the acquired company is not get cash proceeds, so it can avoid the income tax expense in the period.Chapter 2 talks about the general characteristics of stock exchange M&A in China. On the basis of cases in different periods summarizes the characteristics.Chapter 3 analyzes the performance of the stock exchange merger in the capital market of China by financial index method. Financial index method according to a set of comprehensive financial index that can reflect the listed corporations'accomplishment, using the factor analysis method and constructing a general function that could weigh the enterprises'performance. For the current development of China's capital market is not perfect enough, financial index method is widely used by the scholars. Compared with case method, financial index method is not based on capital market efficiency, so it is used in this paper. Through the whole empirical test, we find the performance declined after M&A in the listed corporations, while the performance of recent stock exchange M&A cases is relative good that after reform of non-tradable shares.