The Performance Analysis On M&A Behavior Of Listed Companies Of China

On the circumstances of deeping reform on market economic system in our country, themerge acquisition as a relatively quick way of property rights transaction, is more and morewidely used by listed companies, and gradually become an important method of optimizingresource, updating production technology, expanding scale, improving competitiveness,increasing enterprise value. But have listed companies ever get operating efficiency from M&A,or how much performance can be improved by M&A, the answers to these issues in the area ofacademic and practice haven’t reach an agreement yet. Looking back on the M&A market inChina, some listed companies have reduced the production cost and determined the reasonablestrategy development direction because of the correct decision-making of M&A; some listedcompanies’ operation and development have been drag down because of soaring ambition.Therefore, a detailed analysis on M&A behavior has a very strong practical significance, basedon the previous experience of success and failure, when the listed companies encounter suchproblem in the future, they can learn to foster strengths and circumvent weaknesses, and they canmake efforts towards improving business performance.In this paper, the research adopts the method of combination of theoretical and empiricalanalysis. In terms of theoretical analysis, the research have determined the behavior criterion ofM&A of listed companies and laid a solid theoretical foundation by introducing the relatedtheory and reason of M&A, the present situation of M&A in China, some kinds of evaluationmethods and their advantages and disadvantages. In terms of empirical analysis, the researchselected some M&A incidents which happened in Shanghai and Shenzhen A-share main stockmarket in2007and used the EVA model to compare the EVA efficiency (REVA) of the samplecompanies in2005-2010, and then analyzed whether M&A can improve the performance oflisted companies. Based on the above, the research continued to analyze the factors affecting theperformance of M&A by using multiple linear regression method.Through the above research, this paper obtains the main conclusions are as follows: theM&A performance of listed companies in China generally shows up and then descended andrebounded again, most of the business performance of the enterprises has improved comparedwith before; according to the different classification, horizontal M&A has a better overallperformance, the performance stability of the mixed M&A is poorer, state-controlled listedcompanies in the performance of M&A is better than private holding company, the listed companies which in the stage of mature industry, their M&A performance is ideal, the listedcompany which choose shareholding and other non-cash payment, their business performance isexcellent in a few years after the M&A; regression analysis results show that economicenvironment and M&A behavior are both the significant factors influencing the performance oflisted company, but the influence power of M&A is weaker than economic environment, thefurther empirical analysis of performance finds that several types of M&A behavior this paperselects performance significantly in some regression equations, which shows that types of M&A,business nature, industry type and mode of payment have positive or negative influence towardsthe M&A performance of listed companies.