Game Model Construction And Empirical Analysis Of The Market Value Of Chinese-funded Banks’ Overseas Merger And Acquisition

Existing studies prove that the worldwide have advanced five merger climaxs intwentieth century. Following the law that the wave of bank mergers is highly consistentwith the economic cycle, banking’s the sixth merger climax is rising with the impact of theU.S. financial crisis into the twentieth century. Either from existing researches, or realisticcases, mergers have always been the best choice of the commercial banks to foreigninvestment. Facing of the once-in-a-century financial crisis, China’s commercial banks alsotimely grasp the opportunity to respond positively to the call of “going out” policy, and toaccelerate the pace of overseas acquisitions. In fact, an important object of Chinese banks’overseas mergers is to get the value-added, whether or not it will get the value-added andwhat factors can affect its value enhancement is particularly important.This paper research the market value of Chinese banks’ overseas merger activitiesbased on the special background of the post-crisis era. The first part is introduction. Thesecond part, we use Game theory on the basis of traditional bank mergers theory buildingthe model of a Chinese bank overseas merger with alternating offers bargaining underconditons of incomplete information dynamic game to analysis of the value distribution,which lay the theoretical foundation for the cross-border merger of Chinese banks. Thethird part, we use Event Study to analyze the market-value-added of overseas mergers by aseries of merger activities that have carried out in post-crisis era, and we come to aconclusion that overseas mergers can bring value-added in the short term. The fourth part,for the merger market value creation, we use Factor Analysis puting the possible factorsinto the factor analysis model to explain its influencing factors, factor analysis play adimensionality reduction purpose and come to different influencing factors contribution ofvalue creation. The fifth part, on the basis of affirming the market value creation, accordingto the different explanation of factors in front part, and we propose countermeasures andsuggestions about Chinese banks’ overseas mergers.