Company Mergers And Acquisitions Under Different Payment An Empirical Analysis

As the market economy in our country develops, various kinds of enterprises obtain opportunities of great development. In the three decades of reformation and opening up, our enterprises have been growing bigger and stronger, even broaden overseas. One of the important and feasible ways is merger and acquisition (M&A). Look at the history of enterprise development since20th century, almost all the big companies, large enterprise group have experienced M&A in their growth process, almost no one is depend on its own development to grow up.Because of the important role that the M&A plays in the whole economic activities, it’s necessary to do a systematic research in it. In the fifth big wave of the global M&A, there also came the rush of M&A among domestic enterprises. Throughout the cases of M&A in latest three years, not only the number of the case is increasing, the transaction amount of M&A is also rising. Domestic scholars also have done a large amount of research on M&A, and the M&A performance is the most important part of the research. As the judgment of whether the M&A is successful or not, M&A performance has both the theoretical and practical significance in research. Therefore, this essay is aimed at M&A performance, trying to study the M&A performance of listed companies from different angels and provide referable suggestions to the development of M&A.This essay chooses the M&A cases of A-share listed companies in Shanghai and Shenzhen stock market as study object. As using event study method, I choose sample data in stict accordance with the screening criteria of the event study, finalized the145sample data. The samples are all sorted by industry related degree and different payments. By using event study method, the short-term M&A performance are analyzed in the degree of different payments and industries. Therefore there comes the conclusion of the essay:The total145selected samples show negative performance. In one hand, only companies which paid by stock shares get a significant return, while companies which paid by cash or assets have negative effects because of M&A, and companies which using mixed ways can not measure the impact. In the other hand, companies using the way of horizontal M&A have a slightly negative influence by M&A events, while those using the way of vertical or mixed M&A hardly have an impact. We found another interesting conclusion is that in the event of (-30,30), M&A performance does not seem ideal, but in a shorter event period (-5,5), often M&A performance are more obvious.Based on the studies of chosen samples, composited the conclusions of domestic researches, this essay provided pointed advice and suggestions. The main purpose is to provide some points to domestic studies in this field and some theoretical references for practitioners of M&A in listed companies.