The Empirical Study On Overseas M&a Performance Of Chinese Commercial Banks

Throughout the development of China's banking, the panorama of this area is constituted of the bidirectional M&A activities of foreign banks and Chinese banks. In today's academic world, the extent and depth of researches on foreign banks consolidating domestic banks are prominent, while few works address the issue of M&A in reverse direction. The fact, since 2006, the development of overseas M&A of China's commercial banks has reached a new level, both in the number of mergers and in the amount of transactions. Moreover, as the financial crisis, the overseas market became the focus once again. In the context of the current financial crisis, the problem that whether these overseas M&A can bring benefits to commercial banks and thus enhancing their international competitiveness is not only the key issue to be considered,but also has an important reference for the following overseas acquisitions of Chinese commercial banks.Researches on M&A performance in foreign, are relatively mature,but there is no agreement in results. M&A of Chinese commercial banks started relative lately, Chinese researches base on the abroad theory and method, are also diversity in results. Therefore, this article attempts to start from the case, in-depth observation of M & A cases, to judge the effectiveness of M&A events.The article firstly reviews the empirical literature on the performance of bank mergers and acquisitions, Based on literature review, this article further attempts to sort the motivation theory and research methods and analyze development status including the process, the causes, characteristics and problems. Then, respectively analyzing the success cases of Industrial and Commercial Bank of China by the methods of event study, financial ratios and data envelopment analysis, three methods are consistent with the conclusion that the merger is efficient. Finally, on the one hand, article discusses the revelation that is form Industrial and Commercial Bank of China, on the other hand, this article combines with the current financial crisis, pointing the mistakes, against mistakes and problems, putting forward various proposals and measures focus from the risk control and overseas investment strategies including investment regions, acquisition targets and manner and integration and any other else.