The Researcher On Merger Premiums Of Enterprise In China

As the world economy continues to develop, the phenomenon of inter-firm M&A have become increasingly frequent. Through M&A enterprises can be an effective combination of resources and complementary advantages, these can help the enterprises become bigger and stronger by a short way. Now, in business, merger and acquisition activity has become an unstoppable global trend, the scale, wide of M&A is increasing, and the amount of M&A is increasing high too. However, many studies have showed that the majority of mergers and acquisitions are unsuccessful. There are many reasons leading to the failure of mergers and acquisitions, the premium is too high to pay is a factor can not be ignored.In this paper, the main line is the premium paid in M&A. At First, study the theory of the formation mechanism of premium, and then collect samples of mergers and acquisitions between 2006-2008, and these samples are divided into three groups in accordance with the extent of its premium paid, and observe the changes before and after the M&A, at last analyze the factors that affect the pricing of M&A and made recommendations. There are two main ways in academic research on M&A, first is the event study method, and second is analysis of financial indicators. In view of China's capital market imperfections, does not meet the conditions for the use of event study method, this article mainly uses financial indicators analysis. The article is divided into six parts.Chapter I: Introduction. First analyzed the research background and significance, and then reviewed the study of mergers and acquisitions at home and abroad, including mergers and acquisitions motives, M&A premium, M&A performance study. Finally is the main research content and research method.Chapter II: M&A premium theory. At first, this chapter define the premium concepts, and then elaborate the synergies, M&A premium performance, the relationship between mergers and acquisitions.Chapter III: analysis of formation mechanism of M&A premium. This chapter is begin with the formation of M&A premium, and then analyzes the main valuation methods in M & A, finally, analysis the acquisition premium of bid formation.Chapter IV: Analysis of financial indicators. This paper selected 60 M&A events occurred in 2006-2008, and divided into three groups in accordance with the different levels of premium paid, compared to ROE and EPS before and after mergers and acquisitions to determine the impact of premium payment and premium varying degrees of payment.Chapter V: The factors that impact M&A pricing and some countermeasures. This chapter points out several key factors that impact the pricing of mergers and acquisitions, such as the value of rating agencies is unsound and the enterprises themselves over-reliance on rating agencies, inadequate attention to the valuation of the status , and capital market imperfections caused by asymmetric information, as well as the Government's too much intervention. In response to these factors, this paper also put forward its own proposals.Chapter VI: Conclusions and inspiration. Through the above analysis of five chapters, draw conclusions and some enlightenment, finally analysis the shortcomings in this study and follow-up research directions.