Research On The Performance Of China's Listed Companies After Foreign Merger And Acquisition

In company with China's integration into world economy, foreign mergers and acquisitions have been rapid development, and the issue that the effects of merger and acquisition on targets' performance are becoming public concern with great controversy. In help with empirical study, this paper hopes to has research on it, and at the same time explore reasons behind the targets' performance difference.In this paper, empirical analysis is adopted to analyze the impact of foreign merger and acquisitions on listed companies' performance, and the empirical method is data envelopment analysis (DEA) with BCC model, the study range is from 1995 to 2009.This paper is divided into four parts: The first chapter is the introduction of research background, methods, significance and previous research results. The second chapter is overview of foreign merger and acquisition with China's listed companies, and content includes foreign M&A background, motivation, development history, current situation and characteristics of the analysis which lays the foundation for followed research. The third chapter is the key parts of this paper, it introduce the data envelopment analysis (DEA) with BCC model to has research on effects that foreign merger and acquisition on performance of listed companies in China, and this chapter includes as follow: an introduction of model used in empirical study .data sources and processing, the process of empirical analysis and research conclusions. The fourth chapter is to explain the conclusions of research and it also gives some advice about foreign merger and acquisition; finally this chapter looks forward to further research.The study concluded that: the target companies after the acquisition by foreign investors appear trends of performance improvement, but the statistical test shows that the sample whose performance is significantly improved account for only 52%, while the performance of ex-post continues to decline account for 36%, and other samples' statistical test is not significant, From the empirical research, the conclusion support the positive of significance to encourage foreign merger and acquisition, on the other hand it also shows that many problems are still need to solve, and this paper point out some suggestion to improve mergers and acquisitions effects from the aspects of government and corporation.