An Empirical Study On The Merger And Acquisition Performance Of Private Listed Company In China

Mergers and acquisitions is the laws of eternity to realize its own development goal.In today’s good development situation,private enterprises gain rapid development.Underthe condition of capital continuously abundanted and the scale unceasinglyexpanded,private enterprises are no longer merely content with the step-by-stepdevelopment on its own efforts,in contrast,they flood into the tide of M&A. In this spring,is it true that private enterprises can improve their performance? What factors affectperformance?And how to affact? This is undoubtedly the most issue of concern.Based onthe research results at home and abroad for reference, I make the definition of M&A、private listed company and the performance of merger and acquisition. Under theguidance of the mergers and acquisitions motivation theory of private enterprises, I analyzethe factors which influence the performance of mergers and acquisitions in theory,andmake the events which happened in China from January1,2009to December31,2010of the private listed companies as samples，using event study empirical to analysis thecumulative abnormal returns（CAR）of China’s private listed companies.And find thatmergers and acquisitions has a great influence on average abnormal returns (AAR) andcumulative average abnormal returns (CAAR) of private listed company,namely M&Aevents raise short-term performance of private listed companies.And then this paperanalys the main factors in order to find whether they influence the cumulative averageabnormal returns (CAAR).These factors are M&A business, the related party transactionsand way of payment.And this paper also analys the cumulative abnormal returns(CAR),find that private listed company’s profitability, financial leverage, the way of M&Apayment, whether the main related factors has a significant effect on M&A performance ofprivate listed company.The stronger the profitability of private listed companies, the biggerCAR the private listed companies gained through mergers and acquisitions; the higherfinancial leverage, the lower CAR the Chinese private listed companies,gained throughmergers and acquisitions,the CAR by stock payment is higher than cash payment. Inaddition, the growth opportunity is also has some influence on the abnormal return ofprivate listed companies gained through mergers and acquisitions,and the greater the growth opportunity, the greater the M&A performance of private listed company.Theacquirer company Size (LNsb), mergers and acquisitions scale (Size) and the relative scale(ReLaSize), whether the m&a associated transaction (RelPart) does not have significanceon statistical tests. Finally, this paper summarizes the article’s basic conclusion,and thenput forward some related suggestions which is helpful on private enterprises in their futuremerger and acquisition activity.Then explains the limitations of this study, and put forwardthe prospect of this research field.