Research On The Effect Of Transferences Of Corporate Control To The Company Pefrormance Supported By Evidences Of Chinese Listed Companies In Holding Merge

Since1990s China’s capital markets established, the split share system designflaws was existed. Until2005, China carry out the split share structure reform, thisserious drawbacks of the systems began to be gradually corrected. With thecontinuous advance of the wave of share reform, China’s capital market cameinto the circulation times. Circulation era, marking the Chinese capital market, thedifferent weights of the stocks from the same stock, with the shares of profit to thestock shares with the right price a smooth transition; marking the non-tradable stockbecome tradable stock and then wipe out the stock market segmentation; marking thatChina’s capital market achieve the equality of the main rights.China’s control over the market is in such a large background really matured anddeveloped. The market for corporate control refers to the different stakeholdersthrough the collection of shares or principal-agent the right to obtain control of thebusiness, to take over and replace the bad management. Control over the market as anexternal mechanism of corporate governance, with certain constraints on managers,also plays a significant role in promoting the company’s business development.Therefore, it is very necessary to study the value of the company after the transfer ofcontrol over.In a good environment of capital markets, stock prices can be said that It is a"barometer" of the macroeconomic development. This paper uses event studymethodology to study the changes of the value of the company after control istransferred. Selected for the2006-2010Holdings merger, transfers control of thetarget company, random sample of50companies a total of250study. AAR and CARreturn on the changes to reflect the company’s operating condition. Finally adopted the method of multiple linear regression to a detailed analysis of factors that affect thetransfer of control over the value of the company.Through empirical research found that the control is transferred can increase thevalue of the target company. Findings in particular: In2006、2008and2009, M&Aevents of the target company value has increased, but the information leaked inadvance. In2007and2010,the value of the target company M&A events hasincreased, and traces of early leak of the merger and reorganization of information.Factors of the specific impact of the transfer of control over the value of the companyafter using multiple linear regression analysis, the results show that the replacementof management of the Company, chairman and general manager of the value ofcompanies by different people as significant at the0.01level, whether managers holdshares as significant at the0.05level. prove that control is transferred, the companymanagement replacement, shareholders receive a higher CAR and the transfer ofcontrol of the chairman and general manager part company, the shareholders receivea lower CAR, managers hold shares shareholders receive a higher CAR.