Research On Relationship Between M&A Behavior And Performance In Listed Companies In The Context Of Market Segmentation

M&A is a mode of resource allocation to rapidly expand the scale of enterprises, butwhether the mergers and acquisitions create more wealth and the conclusions of the study ofthe relationship between M&A and performance is inconsistent, or even the opposite.thevariables, research methods, the environment in which the assumption are not consistent is themain reason. Three decades of reform and opening up, China’s market economy has maderemarkable achievements. However, duing to the Central administrative decentralization andthe government of local protectionism, it results in a segmented market in China.Therefore, inthe context of China’s market segmentation, This paper analyzes the reasons of mergers andacquisitions of listed companies, the relationship between M&A behavior and M&Aperformance, what more, Market segmentation regulate the relationship between M&Abehavior and M&A performance. According to the conclusions, we make recommendationsaccordingly to the existence of the state of the current mergers and acquisitions, as well asmarket segmentation.In this paper, We select174listed enterprises in China that M&A occurs in2006assubject, in the context of China’s market segmentation, we use the total assets of the net profitmargin as a indicator to measure and test performance after mergers and acquisitions, use themultiple regression analysis method to test the relationship between the Listed Company M&A behavior and M&A performance. This analysis found that Mergers and acquisitions ofListed Companies that year performance has improved, compared to the corporate return onassets before and after M&A, the corporate return on assets of mergers and acquisition hassignificantly improved. Therefore, we believe that mergers and acquisitions improve theoperating performance (Finance) of listed companies. Corporate M&A behavior and its owncharacteristics are the main factors affecting the corporate M&A performance, such as thenature of enterprises, mergers and acquisitions types, related transaction, the ratio of M&Atransaction price to total assets, these factors can explain the changes of M&A performance.What’s more, in the context of market segmentation, the degree of market segmentationregulate relationship between the Listed Company M&A behavior and M&A performance.The nature of enterprises have a significant negative impact on M&A performance. Supportthis view.government intend to interve the M&A of the state-owned enterprises in thecontext of market segmentation, and Market segmentation has a negative regulation to therelationship between the corporate nature and M&A performance. Horizontal merger,vertical merger was significantly better in mixed mergers and acquisitions. Whether related transaction has no significant impact of M&A performance, market segmentation has noregulatory role on the relationship between related transaction and M&A performance. Theratio of M&A transaction price to total assets has a significant positive effect on M&Aperformance; market segmentation has a positive regulatory role on the relationship betweenthe ratio of M&A transaction price to total assets and M&A performance under the contextof market segmentation. The proportion of state-owned shares has a significant negative on M&A performance, market segmentation has a negative regulatory role on the relationshipbetween the proportion of state-owned shares and M&A performance.Through the conclusion of this study, we recognize that the market segmentation affectsthe mergers and acquisitions behavior and M&A performance, it is necessary to break thepresent state of market segmentation, to provide a broader space for the development ofenterprises.