Empirical Study Of China's Listed Companies In The Market-driven M & A Activity

Merger and acquisition (M&A) is one of the important forms of capital collocation, and also an important measure of realizing capital element circulation and adjustment of industry structure. Moreover, the M&A behavior between listed companies is also an effective means by which they form external governance effectively. However, M&A activities are always affected by the irrational behavior of investors and administrators' own. In the condition of the development of China's securities market is not mature enough and investors' rational level need to increase, investors and managers' irrational behavior is likely to combine, and resulting in the stock market bubble and aggravate the irrational expansion of the company's M&A, so our research on stock price efficiency of company's M&A activities is necessary.This article mainly studies the impact of irrational behavior of investors in the stock market to M&A of China's listed companies.In this article, we make an all-round study about how to the company's market value and other factors affect the company's M&A, with M&A events samples which occurred in the transfer of control of China's listed companies. First of all, after introducing the theory of Market Driven Acquisitions in detail, we appraised and expanded the theory model when introducing it,and we also achieved much from way of theoretical and applied studies. Then, using paired T-test samples test the impact of the market value to China's M&A behavior, and Logistic regression test the impact of all types of company's market value to the company's M&A events, as well as further study the impact factors of China's M&A restructuring and the impact of intrinsic motivation. At last, based on summarizing the empirical study conclusions of the second part, we give some policy.The research results of this paper are as follows: firstly, the ratio of market value to book value has obviously effect to company's takeover. Secondly, It's very different that the effect of market value on M&A according to whether acquiring corporations are listed companies or not. The degree of targets, which is acquired by listed companies, market value deviating from the basic value is higher than that of targets, which is acquired by unlisted companies. Thirdly, Empirical studies found that other factors effect China's listed companies M&A have different characteristics to different types of companies M&A, including size and equity structure factors of listed companies also affect the transfer of control of China's listed companies.