An Empirical Analysis On Hostile Takeover Effect Of China's Listed Companies

Hostile takeover is a new phenomenon and new trend that have been derived from the recent development process of Chinese capital market. The so called "hostile takeover" meaning the which goes against the wishes of the target company's management and board of directors, opposite of friendly takeover. The main purpose of this study is to evaluate the performance before and after the change. Then analyses the background the samples occurred in order to find the factor that affect the performance changed.The article using financial index analysis method approaches to measure the change of the business performance.It takes 13 valid listed companies as the samples that have experience hostile takeover since 1993. The research showed that hostile takeover is underway inside China. As far as the samples existed now concerned, hostile takeover doesn't play the role of exterior supervising effectively as a whole. Generally speaking, the motive of launching a hostile takeover, the method that the takeover chosen and the anti-takeover the target company implemented will have an impact on the performance of the change.