A Study On The Factors Of Performance Of Mergers And Acquisitions In Chinese Listed Companies

Mergers and acquisitions of listed companies have become increasingly frequent in China, the purposes of acquisitions are to complement each other, strengthen the company's market position, develop new space for development, improve the comprehensive competitiveness and risk-resisting ability, These purposes will be shown on the performance of the company's mergers and acquisitions. So we are concerned about the company's M & A Performance and it is crucial to analyse the factors of the performance of M & A. In order to carry out mergers and acquisitions more effectively, to achieve the optimal allocation of social resources, to promote the strategic adjustment of national economy, to help form the industry's comparative advantage and competitiveness of the company's core market, we should analyse the factors further. All of these will lay a good foundation for the challenges of WTO.I take the method of combining normative research and empirical research In this thesis, and I have conducted empirical analysis, based on merger-related theory and the listed company's financial data of M & A activity occurred in 2008. This thesis first introduces the theory related to the acquisition, clearly define the acquisition and performance, at the same time, briefly described the theory of motivation generated by mergers and acquisitions. All of these make the stakeholders to better understand the causes of mergers and acquisitions and the impacts of mergers and acquisitions; Secondly, I focused on analyzing the factors which affected the performance of mergers and acquisitions, including the company's own characteristics and transaction characteristics; Thirdly, based on the foregoing theoretical analysis, I proposed hypothesis and builded regression models. By taking the M & A event of the 2008 A-share market listed companies in China as the sample data and combining the relevant data of 2009～2010, I have conducted empirical analysis of factors affecting the performance of Mergers and acquisitions of listed companies. I analysed the payment, acquisition premium, acquisition mode, related party transactions, the ownership structure, the life cycle and other factors which will affect the performance of mergers and acquisitions.I take ROE and profit margin of main business income as dependent variables which will effectively reflect the performance of mergers and acquisitions in the empirical analysis, take the relevant factors as independent variables, establish models. Through testing the relevant hypothesis, I get the following conclusions:Firstly, cash payments and the company's performance is positively related in short time, but cash payments may have a negative impact on company performance in long term; Secondly, the effective acquisition premium and the company's performance is a significant positive correlation; Thirdly, industry related associated with the company's performance is a significant positively related; Fourthly, related party transactions with the company's performance is a significant positive correlation; At last, the state-owned shares of the shareholding structure have a significant negative impact on the performance of the company's acquisition. Finally, for the empirical results of the analysis and combined with specific national conditions, I make some suggestions and strategies which are avorable to the listed company to make a scientific decision-making and improve the performance of the mergers and acquisitions, which will make the acquisition of listed companies more effectively.The so-called innovations are relative, they are based on the summary obtained from the related previous studies. Base on previous studies and combine with the data of the recent years, I analyse the relationship of the main factors and the performance of mergers and acquisitions, which will support and extend the existing research findings in this thesis. Of course, there are something inadequate and which need further improvement:Firstly, because there are many indicators of performance evaluation of listed companies, and there are no clear requirements and provisions of performance evaluation system for the evaluation of listed companies in our country, so when selected, there is a certain subjectivity and personal preferences, at the same time, the selected two indicators in this thesis are reflected the historical data, so there are some flaws; Secondly, since the limitations of the informations of data and the time, this thesis does not analyse the listed companies according to the industry, so the findings do not reflect differences in various industries, to some certain extent, they affect the accuracy of the results; At last, because of some restrictions such as the source of data, the collection of data and many other restrictions, although the corporate performance is affected by many factors, this paper only consider a few key factors without taking all factors into account, so there must be some impacts on the choice, the judgments and the analysis of the model. As a result of the defects and shortcomings, the analysis and conclusions of this thesis will inevitably be inadequate, so we should continue to conduct related researches in the learn and practice in the future.