Listed Company Merger And Acquisition Of The Target Company Characteristics Analysis

Listed company merger and acquisition of the target company characteristicsanalysis company merger and acquisition, for the essence of corporate control rights,is the specific way of modern enterprises to realize the extension of the expansion.Compared with the connotation of relying on its own accumulation rolling bigexpansion, extension of the expansion has the characteristics of explosive expansionor development by leaps and bounds. Those large enterprises or enterprise groups ofmodernization is grown through mergers and acquisitions. With the rapiddevelopment of China’s market economic system and the capital market, corporatecontrol contest problem is gradually concerned by theoretical circle.With the modern enterprise "separation of two rights" in modern enterprises, anddue to inconsistent outside investors and the interests of the company goal,widespread entrustment--agency problem comes out. The market for corporatecontrol is to solve the principal--agent problem of external mechanism. If the actualcontroller of the company is not recognize maximize the value of the firm or thestock market value maximization as the goal. the market for corporate control, act asan external governance mechanism, will play a role, the company which is failure ofinternal governance mechanism will become the merger target of the other companies.The company was reorganized as the actually controller, and internal governancemechanism will be reconstructed. Researching on the characteristics of Target Corp isan important part of the researching on control power market of the company.Researching on the characteristics of Target Corp in M&A is not only beneficial to the bidding company to quickly find Target Corp and make the correct decision,while expanding its business scale to maximize the value of the company, but alsoconducive to the Target Corp to understand themselves in the corporate control rightcompetition position, and timely adjust of development strategy or deal with potentialM&A crisis.This paper select the40listing Corporations which is control transferred in2011in China and the corresponding paired samples as the study sample, and make anempirical analysis on the characteristics of company mergers and acquisitions ofTarget Corp. First of all, based on the selected30indexes which are on behalf ofprofit ability, operation ability, development ability, solvency, cash flow, theenterprise value and the size of the company, K-S test was performed to find out theindex whether accord with normal distribution or not, and make the independentsamples T test if the index meet the normal distribution, and make the Mann-WhitneyU test of two independent samples for the index which is not meet the normaldistribution, finally I got12indicators have significant difference of Target Corp andnon-Target Corp. this paper make descriptive statistical analysis for these significantdifferences obvious indicators, and find out the different aspects and the size of thevalue of the relationship between Target Corp and non-Target Corp. Finally, throughfactor analysis, we select5indexes to represent the Target Corp，then use Logisticregression analysis to find out the prediction model.The results showed: the company whose profitability and the operation ability ispoor is more easily becoming the Target Corp; the company appeared in the "growth--resources" unbalanced is also tend to be the underestimated in M&A Target Corp;on the aspect of the company undervalued, because of the complexity of the samplelimitations and company value calculation, although the conclusion support thecompany which is undervalued is easily becoming M&A target company, but theresult is not ideal; on the aspect of the size of company,it is verified that smaller companies can easily become the Target Corp. Prediction model was established bymeans of factor analysis and Logistic regression analysis, and through the inspectionof the prediction accuracy.