.2001 Acquisition Of Listed Companies Before And After The Performance Change Of Empirical Analysis

This article is an empirical study about the performance movement of listed companies with acquisitions in 2001. The acquisitions referred in this article include two categories: acquisitions of control by purchasing shares of non-listed companies and acquisitions of assets from other entities. The listed company samples for the empirical study are mainly obtained from China Mergers & Acquisitions Report (Chief Editor Wang Wei) and the financial ratios are calculated by the author himself. Methods used in the empirical study includes 3 steps: firstly, design a comprehensive index system consisting of 10 financial ratios about the profitability, liquidity and asset management capabilities; secondly, calculate the comprehensive scores using factor analysis; finally analyze the movement of average comprehensive scores before and after the acquisition. Besides, sample companies are also analyzed by using single financial indicator Return On Equity. The result of empirical study shows that the operating performance of sample companies deteriorated after the acquisitions. Though the ROE ratios for some companies increased on the year of acquisition, they dropped down in the next two consecutive years. Further analysis concludes: ① those companies which acquired assets tended to have better performance prior to the acquisition than those which acquired shares. ② acquisitions between affiliated companies tended to have much worse performance than those between independent companies. The author also tries to raise the concepts of quasi-transfer of corporate control and real transfer of corporate control. It is also found that those quasi-transfers of corporate control made listed companies performance deteriorate while the impact of real transfer of corporate control is not obvious.