The Research On The Efficiency Of The Market For Listed Corporate Control In China

As very important external corporate governance mechanism,the market forcorporate control has attracted widespread attention,among it,whether the market forcorporate control can play an effective role,whether control right transferring in the marketfor corporate control can enhance the value of the target company,what are the factors thataffect the efficiency of the market for corporate control and so on,are the much concernedproblems of domestic and foreign scholars. On the basis of reference to the study of theefficiency of the market for corporate control,this paper defines the related concepts of themarket for corporate control and describes some basic theories in this area.From differentangles analyses have been made on the factors that may affect the efficiency of the marketfor corporate control,and at the same time the related hypotheses have been proposed.Inthe empirical part,this paper uses the listed companies in China which have control righttransferring during2009to2011as the sample,takes the method of event study based onthe market adjusted model,in particular uses the Average Abnormal Return (AAR) andComulative Abnormal Return (CAR) as the index reflecting the market reaction on thecontrol right transferring events,through the analysis of the market reaction on the thecontrol right transferring events it tests the efficiency of the market for corporatecontrol,and then the multiple regression analysis has been made on the influencingfactors.The result shows that the control right transferring events have strong effect on theAverage Abnormal Return and the Cumulative Abnormal Return of the target company inthe short term,the target company can get a significant8.11%CAR of in the whole eventterm, namely that the control right transferring exerts a positive influence on theshareholder wealth and enterprise value of the target company, the market for corporatecontrol in china has a certain degree of efficiency; Transfer equity ratio、P/E ratio(thegrowth of the target company) and the payment method all have significant influence onthe market reacon on the control right transferring events,with the transfer equity ratio andP/E ratio increased,and cash payment used simultaneously,the the control right transferringevents can get higher CAR in the event term.In the end,this paper summarizes its basicconclusions and shortness,puts forward some relevant suggestions and discusses the futureresearch directions in this field.