An Empirical Study Of The Listed Company Merger And The Performance And Impact Factors

M&A mainly means an enterprise buys part of or all assets or equity with cash, securities etc, through which the buyer can control the target. As an important way for enterprise to grow big and allocate resources, M&A has gained maturing application and progress. With rapid growth in China and its integration into globalization, M&A happen more and more frequently domestically. According to incomplete statistics, there are about 2000 cases related to listed companies every year during 2002 to 2005 and this number rises to 4000 during 2006 to 2008, while in a single year of 2008, it even reaches 5000.On M&A performance, there are great disputes in researches home and aboard. M&A premium theory, which regards positive benefit exist, assert M&A would benefit companies in synergies effect, diversification of risk, tax incentives and market control power, etc.. On the other hand, M&A discount theory believes M&A originates from agency problem, overconfidence of management and tunneling of major shareholders, but never connected with shareholders benefit maximization. Furthermore, this theory regards no inherent value could be added through M&A, which even can pose negative effect.This paper is dedicated to figure out whether M&A can pose positive effect in rapidly growing domestic market. It turns out CAR of M&A companies are positive in most time span and grows with the length of the span through regression of data in Shanghai and Shenzhen A-share markets from 2005 to 2008. Although during some specific time span, CAR difference between different year in the four years is significant, in general, it is not notable, which means excess return is not heavily influenced by the whole market.On the basis of M&A premium theory, we try to find the variables affecting CAR through multivariable analysis. As the M&A discount theory mainly focuses on the Agency problems, Management overconfidence theory and Large shareholders occupy listing resources theory, therefore we designed some corporate governance variables in the model. However, the results show that whether the nature of the enterprises is state-owned or private has no significant impact on performance in single-factor test. But some data of the acquisition itself, the enterprise's own feature and some variables involved in the M&A discount theory significantly affect the size of M&A performance. Among them, the total asset size is significantly positive, while the trading value of the ratio of total assets, mergers and acquisitions business debt ratio was significantly negatively correlated; chairman of the board is a significant positive change, the change of the general manager is negative; the proportion of top five shareholders are significantly negative, but the square of the ratio of the top five major shareholders expressed ownership concentration has a significant positive effect. This shows that, in China's capital market, on the one hand, the attention of M&A is mainly focused on the nature of M&A itself and on the other hand, the acquisition of motivation and agency problems are also significantly affect the acquisition performance.