As China's market economy gradually improving, China M&A activity shows vigorous development trend. M&A activity gradually become a business development and expansion strategy, as a means of capital operation. At the same time, M&A activity also caused the academicians' concerns. Many academicians want to find out whether the M&A activity in the current market environment has created value.In this paper, empirical research methods and standardize research methods are used to study the impact on the M&A target companies' operating performance caused by M&A activity. We empirically analyze the changes of companies' operating performance before and after the transfer of shares cases that took place in China A-share market in the year 2004. All samples are divided in groups on condition that whether the control has been transferred and so on.Positive findings in this paper: as a whole the transfer of shares of the target company does not significantly affect performance ; there was no significant difference in financial performance between companies whose control has been transferred and whose control hasn't been transferred ,companies whose shares were paid and whose shares were not paid ; after the control right being transferred from the state-owned controlling shareholders to the non-state-owned controlling shareholder, the target companies' performance was significant improved; industry-related mergers and acquisitions performance superior to non-performance-related mergers and acquisitions.Finally this paper made specific policy recommendations on how to improve the performance of mergers and acquisitions of listed companies and noted limitations of this study and follow-up study on the proposed. |