Analysis On The Influencing Factors Of M&A Performance Of China’s State-owned Enterprises

With the further development of the capital market, M&A has become an effectivemeans to expand the scale of production and it is helpful to promote the adjustment ofindustry. Due to the particularity of China’s state-owned enterprises and its leading role inthe national economy, M&A of state-owned enterprises not only has the generalcharacteristics, but also has its own unique characteristics. Therefore, the research on theM&A performance of China’s state-owned enterprise and deeply analyzing the influencingfactors about M&A performance, will be helpful to speed up the process of the reform ofstate-owned enterprises, promote the adjustment of industrial structure, and ensure thevalue of state-owned assets.This paper adopts normative method and positive method for study. In the first place,we must have a comprehensive understanding of the characteristics of the state-ownedenterprises, the present situation and potential risks of the M&A of China’s state-ownedenterprises. And make a further analysis about the existing problems of M&A according tothe present situation of the M&A performance of China’s state-owned enterprise. Secondly,Based on the theoretical analysis about the influencing factors of M&A performance, weput forward some hypotheses on the relationship between related transaction, the relativescale of transaction, mode of payment, the proportion of tradable shares, managementshareholders, equity concentration and the M&A performance. Thirdly, by using method offactor analysis, we make an evaluation on the M&A performance of China’s state-ownedenterprises. According to the research hypotheses, multiple regression modes are used fortest. Finally, based on the empirical study and the characteristics of China’s state-ownedenterprises, we make some suggestions on how to improve the M&A performance ofChina’s state-owned enterprises.The main conclusions by empirical study of this paper are as follows: Firstly, the M&Aperformance of China’s state-owned enterprises do not make a progress in the long term.Secondly, related transaction, the proportion of tradable shares and managementshareholders are helpful to improve the M&A performance of China’s state-ownedenterprises. Cash payment, the relative scale of transaction and equity concentration allhave negative impact on the M&A performance of China’s state-owned enterprises.