The Economic Benefits Of Research, Mergers And Acquisitions Of Listed Companies In China

Merger & Acquisition, an important way for the rapid development and strategic expansion of modern enterprises, can raise enterprises' competitive edge and promote the longrterm growth of business performance through the economies of scale and the cooperative effectiveness to realize the goal of long-term growth of enterprises finally. However, in many cases of merger in china and overseas, M&A always fail to realize this goal in the end. To takeovers of the public corporations of this country, what is its long-term influence on corporations' achievement? How could improve the performance of M&A about Chinese public corporations?Before carrying on research to the theme of the paper, we should understand the theories of takeover in the past time firstly. So, this paper has completed the overview to the things involving in the theories of M&A in chapter one which includes the identification, of the concept of M&A, classification of takeover from various kinds of angles, interpretation of the different theories mainly from the developed countries. The main purposes of this chapter lie in the intension to identify the nature of research objects, and explain why takeover happens in theory.In chapter two. this paper has reviewed the history of enterprise's takeover of our country, analyzed current situation and trends in the field. Next, through the comparison between Chinese and foreign corporations in merging environment, merging motives and government's role in takeover, we reveal the characteristics of takeover of Chinese public corporations. As a result, we has settled solid foundation for analyzing the benefits of M&A further.In chapter three, this paper concerns on detailed analysis and appraisal to the benefits of the public corporations of our country. First of all, this paper identifies the concept of benefit about M&A, and puts forward the view that the long-term growthof performance is the core of benefits. So, long-term improvement of performance after M&A should be regarded as the criterions for appraisal. According to the performance evaluation system of state-owned enterprises (Chinese National Ministry of Finance), the paper uses accounting study method as the main method to analyze M&A of the public corporations of our country. Meanwhile, this paper explains why it is not suitable to use events study method to evaluate the benefits of Chinese public corporations in current situation. Secondly, this paper selected the public corporations engaging in M&A at the first half of 2001 of our country as the sample, then go on positive analysis to sample companies. Through the positive analysis, this section concludes that the benefits fall generally after merging of Chinese public corporations; Final!>. this paper utilize relevant representative cases to study what is the essential factors in M&A benefits.In the last chapter, this paper propose some suggestions about the M&A benefits of Chinese public corporations, which focus on several respects such as point of view in M&A. the responsibility of public corporations, legislations and regulations of M&A and the function of relevant government agencies.It seems to the author that relevant people or the organization should have a correct understanding to the behavior of merging and dispel all sorts of misunderstanding of takeover for the improvement of benefits in public corporations involving in M&A. Before M&A, public corporations must make one specific vision or strategy at first, and disclose it in public as soon as possible; Secondly, public corporations must choose a suitable objects for one's own merger goal, carry on detailed responsible investigation to the targeted company. On mis basis, it should choose a suitable value assessment method to carry on scientific appraise to the targeted company: Finally, after the M&A is finished, the corporation must cany on effectively overall integration in corporation administration structure, organization culture, human resources, management and administration, system of both sides, in order to reach the...