Chinese Listed Companies M & A Performance Of Empirical Research

Merger and Acquisition (M&A) which is an effective approach to adjust industrial structure and expand corporation running scale rapidly has been developing for more than 100 years in western. History of economy indicates: USA has established its powerful economic position in world after 5 M&A climaxes. Merger and Acquisition of Listed companies in China began at the initial of the 1990s. After more than ten years rapidly development, China has made enormous progress. Some scholars say : "It takes China 10 years to gain the achievement on M&A, but it take western countries more than 100 years ." However, The discuss on whether the performance of merger and Acquisition is good or not never stopped no matter in domestic or at abroad.After refer to the M&A theories and research methods about M&A performance profoundly, The article carry out the empirical research of M&A performance of listed companies in China from two angles:1.The impact on wealth of acquiring company's shareholders from M&A, in the other word, the impact on return and risk of acquiring company's stock ;2.The impact on operation performance and financial situation of acquiring company. Because of the phased characteristic of M&A development of China, The article selects the samples of acquisitions of listed companies during 1998-2001 period to study. Finally, According to the result of the empirical research , the article puts forward the relevant suggestions about the listed companies M&A. The main contents and research conclusions of the article are as follows:Chapter I :To Explain the basic conceptions, types, characteristics M&A concerned in the western and reclassify M&A according to the listed companies M& A practice in China.ChapterII: To review the relevant M&A theory in western and explain the M& A motives by the eight major M&A theories mentioned above .Chapter III: To expound the four major empirical research methods on M&A performance so far and review the conclusions of M&A performance which have drawn by scholars in the world.ChapterIV:To select the samples of acquisitions of listed companies during 1998-2001 period to research the change of return and risk of acquiring companies comprehensively by appropriate corporation performance appraisals From the angle of short-term(day),medium-term(month),and long-term(year). The results of the empirical research indicates: M&A lead to decrease the shareholder's wealth of acquiring company no matter at long-term or medium-term, however, at the day of merger announcement and following 2-3 days ,the stock of acquiring company exists the positive abnormal return .ChapterV: Firstly ,The article compare the operation performance of listed companies before merger with after merger by financial appraisals of return of equity and gross profit ratio , the result of the empirical research indicates: the decline of operation performance lead to amalgamate directly , and merger and acquisition can ameliorate the short-term financial situation , but can't stop the decline of operationperformance from angel of long-term . secondly, The article establish an integrative appraisal model of M&A performance by cluster analysis and Fisher discriminant analysis.ChapterVI: To summarize the conclusions the empirical research arrives at, and put forward some correlative suggestions about M&A of listed companies in China .