Empirical Studies Towards The Merger Performance Of Listed Companies In China Under Various Merger Models

With acceleration of the economic globalization process, the worldwide market competition is becoming increasingly intense. By adjusting internal resource configuration, obtaining core competiveness, and expanding market share, merger is widely considered to be a significant tool by the enterprises looking for an unbeaten success in the fierce competition. Since1980s, three major merger waves have swept China in several decades, while counterpart of which in western countries takes more than one hundred years. Essentially, only successful merger could help enterprises to enhance its business performances, and it is the result of a game played by multiple sides to determine whether the merger effects are taken advantage of or not. Thus, clarifying the influences of merger on business performances of listed companies in China, studying the trend of changes of merger performances, and offering practical countermeasures and suggestions would be meaningful both from theoretical and practical perspectives to enhance merger performances, exploit cooperative merger effects, regulate stock capital market and maintain stability of financial market.Based on preliminary studies on merger performances of both domestic and international enterprises, this thesis, which found itself a foothold in merger market in China, firstly analyzed the mechanism and efficiency of various merger models using economics theories. Secondly, after setting up a merger performance evaluation standard based on accounting evaluation method, we studied the merger performances in a4-year span of316sample companies, which were selected from enterprises involved in merger events in2008from Shanghai and Shenzhen stock market. Last but not least,the trend of changes of merger performances under different models was comparatively analyzed after the sample enterprises were categorized following different standards into horizontal M&A, vertical M&A, Conglomerate M&A, equity M&A and asset M&A.Through practical studies and analysis, following conclusions could be summarized from this thesis:(1) merger enhances business performances of enterprises to some extent;(2) the merger performances of two parties involved in are not identical;(3) the performance of equity M&A is better than asset M&A;(4) the performance of Horizontal, vertical and Conglomerate merger are not identical;(5) a period of time of integration is needed for merger effect to impose its influences;(6) the consistency of merger performances of listed companies in China is lacked;(7) risks exist during the merger of enterprises;(8) governmental intervention is observed during the merger in China. Based on the conclusion listed above, countermeasures and suggestions were provided in this thesis to improve merger performances and take advantage of merger cooperative effects in the levels of government, enterprise and social medium.The studies illustrated in this thesis not only broaden the vision of research towards the merger performances of listed companies in China, but also inherit and develop the related studies and theoretical achievements. Meanwhile, both rational and feasible references and helps were offered to the supervision and regulation of government, merger and integration of enterprises, decision of investment and participation of intermediary agents. These efforts could hopefully make the most advantage of merger and promote stock capital market to a more sophisticated and developed level.