Empirical Study On Zhejiang Privit Enterprises M&A Listed Companies

As a complex economic activity, M & A has always been focused. In recent years, with rapid growth, private enterprises have dramatically financing demands. However, China's financial institutions prefer the state-owned enterprises. This leads private enterprises to financing difficulties. In contrast, the listed companies have wide financing channels, with strong financing facilities, such as the credibility of listed companies can be used for secured loans, or securities issued stocks, etc. In view of this, to be a listed company becomes the preferred way to private enterprises. But because China's capital market system is imperfect, private enterprises direct listing difficultly. This leads private enterprises to merger and acquisition of listed companies, to solve financing difficulties.In this paper, both empirical and normative research methods are used. Firstly, relevant concepts are defined, motive theories of acquisition, domestic and foreign literatures and conclusions are introduced. Then, based on the above, the hypothesis is given. Secondly,29 listed companies mergered by Zhejiang Private Enterprises in 2000-2007 are selected as a sample. Finally, the proper research methods are chosen, mainly using descriptive statistical analysis and financial indicators through EXCEL and SPSS13.0 software.The main results are as follows:1.non-core asset injections exists in the sample; 2.warrants on behalf of listed companies and equity mortgage exists significantly, private placement methods significantly more than other three re-financing; funds occupation of listed companies not exists significantly;3. listed companies mergered by Zhejiang private enterprises failed in improving business performance.Based on the above, the paper concludes:the behavior of Zhejiang Private Enterprises mergering listed companies in 2000-2007 exists Tunneling behavior.Finally, stated proposals, limitations and further research directions.