Empirical Study On The Impact Of M&a Accounting Treatment Upon The Performance Of M&a Of Listed Companies

Mergers in optimizing resource allocation, improve the efficiency of corporate management has an important role, and therefore very popular in the international arena, business combination of Western economic life has become an important part. As a result of the impact of financial crisis, the global M & A in size in 2008 ended up, but China has become rare bright spot in the global M & A market; in 2008, China's M & A activity remained strong, only to achieve growth in the Asia Pacific region countries. A large-scale merger wave is not only a great impact on the global economic landscape, but also in regulating the accounting presents a challenge to the merger, such as purchase costs, confirmed that the measurement of purchased goodwill and amortization, merger accounting methods, the merged philosophy and so on.In this paper, the merger of the different accounting treatment of differences in starting their own detailed analysis of the characteristics of both its potential economic consequences and accounting consequences, in conjunction with the merger of China's listed companies, the accounting treatment of the status quo, using empirical research to analyze the two the performance impact of the merger. In Shanghai and Shenzhen in China in 2007 occurred in case of a merger of listed companies for the study sample, using the financial analysis on the purchase method and pooling of interest method of scoring the combined performance of a comprehensive analysis of different accounting treatment of the merger performance of mergers produce impact, and further pooling of interest method in China's listed companies merger by the Preferences reasons. On this basis, criteria for evaluation of our business combination using the purchase method and pooling of interest method co-existence of "dual system" structure of rationality. At last, China's national conditions, made a number of operable and guidance of the policy proposals with a view to help the enterprises in the merger guidelines for the development and perfection. As the integration and coordination of financial indicators in the area of the advantages of pooling of interest method is superior to the performance resulting from the merger the combined purchase method produced the performance of enterprises in the merger process of the pooling of interest method with special preferences. When the merger of enterprises belonging to the same under the control of the merger, you can combine using the equity method of accounting treatment, if compared with the use of purchase wears, the main and the company after the merger, be able to obtain higher earnings per share and net capital gains rate, in the the performance of financial indicators is superior to the financial statements under the purchase method. In order to obtain the advantages of financial indicators, companies have an incentive to prefer pooling of interest method was adopted in order to obtain on better financial targets, to achieve financial synergy effect. Better company performance, company size larger for high paid executives more likely. The same enterprise under the control of a combination of pooling of interest method can obtain higher earnings per share and net assets yield rate and increase the nominal remuneration, the company's management after the merger is likely to get higher returns, which makes the company's management preference for their own interests in the use of pooling of interest method to merge.Finally, the article holds that at the present stage of China's special economic environment, are not suitable for blind against pooling of interest method. First of all, China's market-oriented is not high, property rights, is still in development stages, using the fair value purchase method insurmountable problem difficult to solve within a short time, the potential benefits of the purchase method to manipulate the issue can not be ignored; Second, China's listed companies There are a large part of the Group is separated from the state-owned enterprises, and these groups into high-quality assets within the group, business or a separate subsidiary, transformed into a listed company, and then use the way a business combination within the group to achieve the company's overall market In this case, only allowed to adopt a fair value-based purchase method is not realistic. Therefore, the pooling of interest method and the purchase method of binary pattern of co-existence of the reality of our choice. From the current point of view, our country is in a business combination of the growth period, inter-firm merger activity continued to increase. Compared with the purchase method, pooling of interest method is undoubtedly a promotion policy. It has a higher than the purchase method of net return on assets and earnings per share, which can beautify the accounting statements and ultimately the merger will bring better performance, giving investors a lot of faith will help make China's enterprises and stronger large, thus promoting China's economic development.