The Empirical Study On Performance Evaluation Of M&A About Chinese Listed Companies

The first decade of the21st century, along with further accelerate the process of globaleconomic integration, the wave of mergers and acquisitions of listed companies of a waveafter wave, multinational companies have the use of the M&A path to enhance theircompetitiveness. Mergers and acquisitions as to optimize the allocation of resources toachieve economies of scale, one of the effective means to improve economic efficiency, hasbeen the majority of decision makers in foreign listed companies accepted. The managementof listed companies in China should actively study the growth mode of foreign largeenterprises through mergers and acquisitions to achieve industrial upgrading, improve thecompany’s competitiveness, and to actively participate in the global competition. In recentyears, M&A activities of listed companies in China surging, showing the main features ofmore than the number of mergers and acquisitions, large-scale transactions, and activelyparticipate in international mergers and acquisitions. In this context, the M&A performanceof listed companies in China has not only become the objective requirements of thedevelopment of listed companies, is also the inevitable requirement of China’s economicdevelopment.The company acquisition performance has been a hot issue in the M&A theoreticalstudy, but about whether the M&A activity can improve enterprise performance is still notyet conclusive, which is the M&A research has been ongoing. In the process of rapiddevelopment of China’s listed companies merger and acquisition activity, due to China’sspecial situation, the economic system and the nation and culture, making the company M&A in become very complex, leading to the volatility of M&A activity has a great impact onperformance. M&A performance of listed companies in China and their motivation to carryout in-depth analysis is more practical sense, this study focuses on M&A performance oflisted companies in China.Learn from scholars at home and abroad on the basis of mainly commenced inaccordance with the M&A performance theory, performance evaluation system, and empirical research and analysis on the basis of the findings affect M&A performance oflisted companies in China and given to improve China’s listed companies in mergers andacquisitions ideas and measures of performance.2009Shanghai and Sazhen A-share listedcompany M&A events company, choose one of50companies in accordance with theprovisions of the standard as research samples, mainly from the company’s profitability,operating capacity, solvency and ability to grow M&A performance analysis of other aspects,select11financial indicators as the basis for analysis using principal component analysis ofthe empirical research method and factor analysis of the M&A performance of listedcompanies in different M&A types of M&A events.The empirical results show that: M&A activities of listed companies in China did notproduce overall performance should be effect of mergers and acquisitions, the majority of thecompany after the merger has not been significantly improved. From the structural analysispoint of view, the performance of different types of acquisitions vary, but relatively optimisticabout the effect of horizontal mergers and acquisitions, fluctuations in the performance ofvertical mergers mixed M&worst performance to be longer observation; According to theacquired company’s industry, extractive industries, mergers and acquisitions of commercialtrade performance effectively improve; Unstable performance changes of mechanicalinstruments, petrochemical, financial, material and other industries, has a lot of volatility, theworst performing water and electricity supply industry, mergers and acquisitions whenperformance has improved, the bad performance in the post-merger has been in the trend ofdeterioration; M&A performance is better than that of state-owned enterprises to privateenterprises; from related party transactions and non-related transactions to analyze the effectof mergers and acquisitions associated with the effect of mergers and acquisitions thannon-associated better.Finally, combination of China’s actual situation on the basis of empirical research results,pointing out that the existing problems of China’s listed companies in M&A activity, M&Aperformance of listed companies in China and how to improve the provision of relatedmeasures. Hope to help those engaged in the practical and theoretical studies of mergers andacquisitions.