Listed Companies Of China's It Industry M & A Performance Of Empirical Research

In the modern market economy, more and more companies to expand and improved themselves through various channels in the competition mechanism of survival of the fittest. With the formation of capital markets, merger and acquisition (M&A) has become the mainstream approach to expansion capital, optimal allocation of resources, enhance the core competitiveness which is a more suitable way to long-term strategic development. In many industries, the development of science and technology gave birth to the rise of the information technology industry, which is the future industry in the world. Therefore, to some extent, the study of the performance of M&A in Information Technology Industry related to the sustainable development of the company itself and the market boom. Therefore, in this thesis, the author studied the performance of M&A of China's information technology industry in 2006 and analyzed its influencing factors as well as put forward some constructive suggestions, where the two research methods of the event study and the financial indicators were used.The paper is divided into four parts. In the preface, the background of the performance of M&A, the status of the main research contents and the methods at home and abroad were introduced. In the first chapter, the author outlines the theory of mergers and acquisitions including the main modes and types; then details the four theories related to M&A, namely, efficiency theory, agency theory, arrogance and false hypotheses pricing theory; finally summarized five methods of the performance of M&A including an average share price analysis, event study, financial indicators study, Tobin's Q value method and case study. In the second chapter,10 sample companies by screening from China's information technology industry were studied which are divided into short-term performance and long-term performance. In short-term performance studies, the author selected the events window from the 30 trading days before the first announcement of M&A event to the 20 trading days after the publication date, and calculated the abnormal returns and cumulated abnormal return and then the result was that M&A had a positive short-term over-performance to the company and significantly affected; In long-term performance studies, calculated financial indicators of the sample company from the year before M&A to the fourth year after M&A and the result was that M&A had a positive long-term business performance, but the effect was not significant through the establishment of the financial indicators system. Based on the type of acquisition, payment methods, different control and associated factors,the result was that horizontal and mixed mergers and acquisitions was easier to bring positive cumulated abnormal return for listed companies, vertical and mixed mergers and acquisitions were favorable for growth in the long term; shares paying was the best choice; it was helpful of taking control to improve their own short-term abnormal return and the benefits existed in long-term business performance when lose control; non-related M&A was better than association. In the third chapter, suggestions were put forward. Firstly improving the market environment and institutional environment, regulating the process of government behavior and clarifying the information technology industry policy-oriented as to establish an effective M&A market; Secondly, the parties should change their ideas to improve their decision-making level through M&A, and select the appropriate type and payment method of M&A to promote the integration process and strengthen the main strategies.