M&a Market And Notice The Value Effect Research

China’s M&A market has gone through a few stages such as germination, rapid growth and the specification development. Because of administrative planning and state-owned shares and other issues, for now M&A market situation presents unique characteristics:mainly industry mergers and acquisitions under the guidance of the executive, market-oriented behaviors gradually increased. With the end of the split share structure reform and the establishment of with mergers and acquisitions committee, China’s M&A market has been basically open and transparent, bringing laws and regulations more and more orderly, open and transparent. This article follows the perspective of investors to explore whether M&A of listed companies can create value does not the interests of the investors.This article starts from the M&A theory, analyzes the development of domestic and international M&A market, and summarizes our current M&A system. By collecting and analyzing the events listed companies audited by the Commission of M&A, we divided the sample data into the overall listing and with industrial acquisition of (third-party publishing), using the event study method to choose two important time points, the first notice and the date with the administrative licensing announcement. We analyzed the time span, and calculated the company stock premium rate and the cumulative abnormal returns by taking industry index as the baseline. Data dealing methods include regression analysis, cross-analysis, matching analysis, which can help us to understand of the relationship between the type of M&A events and the time span and M&A announcement effect.The study found that there exists insider trading phenomenon in China M&A market, the company’s stock price presents change efore cement of the event for the first time. Compared to the overall listing, the stock prices of industrial acquisition behave better. Overall, the stock price changes during the five days before the suspension of the reorganization. For ordinary investors, under the premise without insider information, investment the "M&A" concept stocks will bring the loss. Relying on two bulletin public information, there will be significant negative returns. Market participants. Market-oriented industrial acquisitions get higher recognition. The study has also found that M&A announcement has life cycle:before and after the lag phase, compared with the industry index, the stock price have a greater premium rate in the short period of time, then the premium rate will remain stable or even declined slightly, to a certain number of days the premium rate will once again produce a substantial increase, and begin to decrease or even disappear after the peak. This can be the recommendations of the investment strategy, but mechanically relying on the research life cycle is difficult to obtain a stable return.