China Listed Company Merger And The Performance Of Empirical Research

Merger and Acquisition (M&A) has a long history in western. It promotes the economicdevelopment in a lot of countries, hi the condition of market economy, the corporation canabsorb external resource and expand its running scale by M&A. hi China, the history ofcorporation M&A is less than ten years, so is the listed company. However, the discuss onwhether the performance of M&A is good or not has never stopped all over the world, differenteconomist holds different idea.This paper gives the existed methods and the results of appraising the performance of M&A,and then selects the listed companies, whose M&A happened in 1997 as samples. On the basisof introducing the M&A' s definition, structure and mode, we provide the purpose of the M&Aand its expected effects, this paper focuses on whether or not the performance of M&Arealizing its goals first set. The relative contents and results are as following:First we review the definition, the type and the mode of M&A, and then point out M&A is avital form as capital management is concerned. The statistics shows that M&A not onlyoccupies the largest percent in the total number, but also is a market behavior for the need of thecorporations' development hi essence.In order to survive in the severe competition, pursue the maximum of its profit andshareholders' benefit, as well as realize the adjustment of social industrial structure and makethe resource to rational distribution, corporation makes use of M&A to expect to make themicro and macro performance of M&A come into truth.Secondly, we describe the method and standard of corporation performance appraisal, aftermaking clearly the goal of appraisal, we decide on the useful variable system for the followingpositive analyzing.Thirdly, Circling around the goal of M&A exposed in the first part, this paper avoids one-sidefactor of using only one year financial variable. We take the listed company which did M&A in1997 as samples and study on the variables of return of earning (ROE), earning per share (EPS)and the change of their stock prices through 5 years datum from 1996 to 2000. All is to analyzethe changing tendency of M&A's performance in a long time as for the samples.Finally, According to the result, we point out the feature of M&A in 1997,China, and explainthe reason why the performance of M&A is not as good as expected. What we will to do is toprovide feasible strategies for the company's M&A and its further development.