China's State-controlled Listed Companies In M&A Performance Evaluation

With the acceleration of economic integration, mergers and acquisitions have become the road of a very fast high-speed expansion of the capital accumulation. April 29, 2005, China Securities Regulatory Commission approved by the State Council promulgated the "listed companies tradable on the pilot reform issues related to notice," split share structure reform will be the total elimination of China's securities market, "rigid control" the biggest bottleneck in the system and change the restriction Listed Companies institutional environment for market development. With the acceleration of split share structure reform, mergers and acquisitions of listed companies have begun to heat up. The split share structure reform in China occurred after the state-controlled listed companies, M & A whether the market will have a positive reaction and M & A performance comparison with the split share structure reform there was no difference before and what factors may have long-term performance of listed companies is the impact of key concern to this article.From the perspective of the use of BHAR model of the stock market, this article uses the sample of company M & A took place before the split share structure reform (2003) and after the split share structure reform (2007) to measure the long-term performance of China's state-controlled listed companies on M & A. Findings: to split share structure reform as the boundary, mergers and acquisitions occurring after the split share structure reform of state-owned holding companies to change long-term performance is better than the stock before the merger took place a long-term performance of state holding listed companies. At the same time, this empirical study using data on the performance of the factors that influence M & A further classification. M & A performance based on factors affecting results from this study concluded that: belong to the jurisdiction of class, never holding class, class M & A related transactions, the long-term deal after the split share structure reform are better than the stock performance of long-term acquisition performance before reform. Finally, this article made recommendations accordingly to M & A activities of listed companies based on quantitative analysis.This paper's innovation is that: from the perspective of split share structure reform, the use of BHAR method to compare the change of split share structure reform before and after the split share structure reform state-controlled Listed Companies in China's long-term performance, and affect the acquisition performance factors that further classification.