The Empirical Research Of M&A Performance And Influencing Factors About Listed Companies In China

During the process of enterprise growth, Mergers and Acquisitions have become animportant way to expand scale and enhance competitiveness of the enterprise, and achieve thestrategic transformation, which also are the essential way for enterprise to strengthen. Withthe continuous progress of China’s market economic system reform, Mergers and Acquisitionshave played an important role in adjusting the industrial structure, and optimizing theallocation of resources. Since the nation launched reform of non-tradable shares in2005, withthe deepening of the reform, the A-share stock of listed company’s stock has achieved a truesense of the full circulation at the end of2011, liquidity of capital market has been morefurther enhanced, M&A activity has been injected new vitality. Coupled with the newcompany law, financial securities law and the acquisition management of listed companieshave been promulgated and implemented, legal obstacles of company mergers andacquisitions will be eliminated, the external market environment of mergers and acquisitionswould be more perfect, M&A mode and transaction characteristics differ from the past.Mergers and acquisitions of China’s listed companies enter a new height period, the number oftransactions and the transaction amount also reach a new height. Therefore，the study of listedcompanies M&A activity in the new situation has important practical and theoretical value.In the first, this paper describes the research background and research significance,defines scientifically of the concept and content of M&A, and reviews M&A related theory,also includes M&A Performance results of research.On this basis, this paper chooses asample of185listed companies in China and12financial indicators reflecting the company’sprofitability, solvency, operational capacity and development capabilities，the Mergers andAcquisitions of which take placed in2009.This paper use factor analysis to build a compositescore model of the M&A performance evaluation, analyze empirically the changes of listedcompanies operating performance, which happened before the Mergers and Acquisitions andafter。The result shows: M&A performance of listed companies in China is showing a trendof increased and then decreased, On the whole, the M&A activity does not essentiallyimprove the operating performance of listed companies in China, and the paper analyze thereasons of this situation simultaneously.In order to find related factor of M&A performance, the paper use multiple regressionmodel to further test the impact factors of M&A Performance. The study indicates: Related tomergers and acquisitions is positively interrelated to corporate performance, which couldimprove the company’s operating performance in some extent; Cash payment is negativelyrelated to M&A performance, cash payment will make the company’s financial positiondeteriorate, which is not conducive to increase mergers and acquisitions performance; Related transactions have some positive impact on M&A performance, but not significantly; highproportion of the largest shareholder, has significant negative impact on the M&Aperformance; the larger transaction size is positively interrelated to M&A performance in theshort term, however, M&A performance will deteriorate in the long term. Finally, the paperput forwards some corresponding countermeasures and suggestions to improve M&Aperformance of listed companies in China, at the same time, the paper also points out theshortcomings in the study and future research prospects.