Private Listed Companies In M ​​& A Performance Study

Private listed companies play more and more important role in the rapid development of economy in our country. They will not be satisfied with the existing advantage when developed to a certain scale and anxious to improve productivity and gain greater market. Enterprises merging are not only the inevitable form to optimize the resources, but also the inevitable requirement of resources liquidity. Therefore, the private listed companies' M&A activities whether can improve the companies' performance have become a growing concern.This paper based on the private listed companies merging as the breakthrough point to research whether these behaviors can improve the performance of the target companies through the analysis of mergers, acquisitions, and the merging situation of the private listed companies. This paper based on the samples of private listed companies' M&A deals what happened in 2007,select four years data which before and after the acquisition to make long-term comparison. The empirical research method of M&A performance adopts accounting index method, makes use of SPSS17.0 statistical software for the factor analysis, calculates the comprehensive factor score over the various years, and ranks factor scores according to industry. Thus, the further analysis conclusion is that we cannot generally speaking M&A can raise or lower the performance of private listed companies.M&A can greatly improve the performance of the target company in deep real estate industry such as:retail trade, biological medicine manufacturing. In addition, as a powerful external means, M&A also can solve the company governance problem, thus reduce agency cost. However, M&A cannot enhance corporate performance in information dissemination, machinery manufacturing, service industries, and fur clothing industries. Therefore, if you're trying to solve in these industries corporate governance problem and improve enterprise efficiency, you should reduce cost, improve productivity and adopt effective internal management mechanism.Finally, this paper makes suggestions from government and private enterprise itself. The government should promote the construction of economic development environment, such as strengthening government macro-control function, clarifying the concept of market in resource allocation, reform of the administrative system etc. Enterprise must complete comprehensively due diligence, including macro environment and the target company, meanwhile should pay attention to the integration after the merger about financial, business and cultural.