M&a And Corporate Value Of Chinese Listed Companies

M&A(Mergers and Acquisitions) research is always a hot topic in the field of banking and finance and its effect on the "Corporate Value " is the core issue of it. Most research on this topic uses "event study" and "accounting research". This thesis argues that these two methods are limited in the application of the conditions, especially in China. Therefore, in this thesis, the impact of M&A on company value is analyzed through the empirical study on listed companies which carry out M&A activities in Shanghai stock market in 2005, using REVA as a measure of the company's value.This thesis constitutes five parts and the main content is as follows:Part 1The introduction part introduces the background, the research significance and literature review of related researches at home and abroad. On the basis of the related literature, the research methods and ideas of this thesis are determined.Part 2This part describes the basic theories and the concept about M&A systematically, reviews the history of M&A at home and abroad, and analyzes the ways to create value in M&A, such as efficiency effect, enterprise development effect, market share effect and agency problems effect.Part 3In this part, the author describes the evaluation methods of corporate value: event study, accounting research, and economic value added (EVA). Every method is analyzed and compared as well as advantages and disadvantages. Then in accordance with China's conditions, the specific calculation of EVA has been adjusted to lay a theoretical foundation for empirical research.Part 4Through the empirical study, whether M&A creates value for the company is checked.33 listed companies form shanghai stock market in 2005 are used as samples and REVA(Refined of Economic Value Added) is used to measure corporate value. First, sample companies'REVA are calculated. Then the entirety and classification of the sample companies are checked by Descriptive Statistics and Paired-Samples T Test. It studies the impact of M&A on the corporate value and the performance differences between different types of M&A.Part 5In the last part, combined with the theoretical research and empirical analysis, conclusions are reached. And some relevant policies and advice are proposed according to the research above.This thesis mainly forms the characteristic and makes certain contributions in the aspects as follows:Firstly, based on EVA, this paper utilizes REVA to weigh the value of the listed companies in China. As a result of the differences in the production size and the capital cost, using EVA to weigh the corporate value has great disparities and does not have good commensurability inevitably. However, using REVA can get rid of the corporate size influence on EVA, thus improves the persuasive power of the conclusions.Secondly, the former research samples were mostly concentrated on the 1999-2004 listed companies in China, however, this thesis selects 33 sample companies which have done M&A transaction in Shanghai stock market in 2005 to conduct the empirical study. Thus, this thesis makes up the research sample vacancy to a certain extent.Thirdly, this thesis adds Paired-Samples T Test on the basis of the Descriptive Statistics, thus thoroughly judges whether M&A could create value for the company obviously or not.Finally, this thesis not only analyzes the overall samples and discovers that M&A obviously creates value for the company, but also carries on the classification test to the samples and finds that the ability of the purchase company to gain the value from M&A is far greater than the goal company, and also the vertical mergers can promote the company value obviously, but the horizontal mergers and the mixed mergers can not affect the company value remarkably.