An Empirical Analysis On M&A Performance Of Listed Companies In China

BACKGROUNDAs the fast development of China’s market economy, the enterprise M&A (M&A) has become the first mode of capital accumulation with rapid expansion, especially in the stock market. The economy of China has important influence by the active of the listed company’s M&A and huge volume of merger turnover. In other words, the development of China’s modern market economy is based on history of enterprise M&A development. Therefore, the activities of M&A have become the social topic and the hot spot issue of academic research, especially problems of M&A performance, but also become a hot research.Enterprise M&A as a very prominent phenomenon in the development of modern economy, its significance lies in:From macroscopic view enterprise M&A is proceed reorganization of an industry, in reason of allocation resource. From microscopic view, enterprise M&A is the certainty path in condition of market economy, it is efficient path too to government facility property right system transitional. Long-term since, many of our enterprises have many problems, one is because of excess production capacity, technology is backward in economy benefit is low, waste of resources; on the other hand, because the state-owned enterprise property rights structure is not clear, the mode of operation of enterprises can not adapt to the market changes to adjust, natural resources cannot get reasonable configuration. Our country is coming to market economy and is design ability transition, certainty result in nationwide integration of industry and enterprise recombine, form social resource’s reposition of the whole countries.Through the norms of c enterprise M&A market, definitude enterprise, main body status of M&A, according to the value of enterprise maximize or stockholder benefit maximize principle, pushing enterprise M&A’s health extend, in regard to promote enterprise reformation deepen and running mechanism translation, realization of complete social resource’s optimize allocation, possess important function. Since1997, enterprise merger and reorganization has become the main form to allocate the market resources. Hence, in-depth analysis and evaluation of M&A performance are great significance to scientific decision of M&A, perfect relevant national legislation and regulation of M&A.PURPOSEThe first purpose of this paper is expected to analyze the changes of performance after the merger of state-owned enterprises and private enterprises, obtains the enterprise M&A a performance changes, the aim is trying to provide a reference for making a reasonable decision and formulating the regulatory measures, in order to improve the performance of enterprises M&A.The second goal of the research is based on the two different ownership of enterprises’empirical analysis of M&A performance, to reveal differences between the state-owned enterprises and private enterprises’M&A performance from the side, using comparative empirical research has increased the empirical results convincing and realistic guiding significance, so as to pave the way for the follow-up study.MAIN CONTENT AND VIEWThis paper is divided into six parts:Chapter one is the introduction, including four aspects:the first is the research background and the research significance, the second is the research thought and content, as well as the technical route, the forth is the main contribution and limitation. The main purpose of this chapter is to introduce the research background of this paper and the overall framework, to pave the way below.Chapter two is the literature review, first review the domestic and foreign M&A development process, from the different stages of enterprise M&A is described the characteristics and the role of. Then, this paper analyzes the domestic and foreign M&A performance research, mainly from the acquisition of the company to manage the influence of performance outcomes classification are summarized, and makes brief analysis, this article points out the direction for the. In this chapter and the third chapter is the theoretical foundation, is the performance of Chinese listed company empirical analysis theory.Chapter three is the acquisition performance of Listed Companies in the part of theoretical analysis, the first section explains the acquisition of content, mainly from the acquisition of the implication and classification to define. The second section of the system analysis on M&A performance based theory, including the efficiency theory, agency theory, and transaction cost theory and so on, and a summary of the M&A of Chinese enterprises to realize the special reasons, the guidance of theory to practice and the combination of the two. Section third for M&A performance influence factor analysis, including the structure of property rights, corporate governance, capital structure and the intervention of the government in four aspects from the theory, research on M&A performance pathways and the mechanism of action, as the next step in the empirical studies theories and guidance.Chapter four is the empirical part, the first section is in the third chapter of the theory on the basis of further analysis, and proposed three hypotheses, a state-owned enterprise M&A to improve operating performance is not positive, two are private enterprise M&A to improve operating performance has a positive role, three private enterprise’s M&A performance superior to the performance of M&A of state-owned enterprises. The second section is the research design part, the first part of the research methods were described, based on the actual situation of our securities business, this paper select the financial index method to perform the empirical research, primarily through principal component analysis and Wilcoxon signed rank test to achieve. Immediately after the sample selection and data sources in detail, through to the2008two stock markets the mergers and acquisitions of listed companies according to certain standard screening, and ultimately determine the sample of35state-owned enterprises, private enterprises merge sample129. The next profitability, solvency, operating capacity, development the respect such as ability chooses9indexes to construct the mergers and acquisitions of listed companies’performance index system. The third section is on the M&A of state-owned enterprises by performance empirical analysis, first sample data, correlation analysis, then uses factor analysis to get all the M&A of state-owned enterprises sample comprehensive performance score, and then in two paired samples signed rank test method on the performance before and after M&A comprehensive comparative analysis, it was found that state-owned enterprise after M&A business performance have continued to decline, but this decline is not very significant. The fourth section is on the private enterprises’m&a performance empirical analysis, steps with the state-owned enterprises, the empirical results show that private enterprises after M&A performance fluctuations, in short fall after rise, but still did not exceed a level. The fifth section is to state-owned enterprises and private enterprises M&A performance are compared and analyzed, using two independent samples signed rank test method of analysis, results show that private enterprises merger performance slightly better than the performance of mergers and acquisitions of state-owned enterprises, but this difference is not significant. The sixth section is the intention of the summary, on the part of empirical study conclusions are analyzed and summarized.Chapter five is the conclusion of the study analysis and policy suggestions, the first section is the fourth chapter of the analysis process and the results of empirical research to make a summary, and has analyzed the results of the possible reasons. The empirical conclusion partial validation of the hypothesis, i.e. M&A of state-owned enterprises by not to improve performance; hypothesis two not until verification, private acquisition performance presents fluctuant state, the private enterprise M&A activities to improve operating performance is not obvious; to a certain extent verified assumption three, that private enterprises performance of mergers and acquisitions M&A performance is better than that of state-owned enterprises. This result may be blind to expand the scale of enterprises and the interests of managers’motivation, as well as the government’s intervention on M&A of state-owned enterprises. The second section is on how to improve the performance of M&A is proposed, combining the empirical conclusion put forward five suggestions:one is to develop and improve the capital market, establish a complete market system of the capital; the two is to strengthen the securities market supervision, improve market efficiency; three is to reduce the government on the merger and reorganization of Listed Companies in the administrative intervention; four is the development of private enterprises to create a more fair, effective market environment; the five is to strengthen the after the merger integration, improve the performance of mergers and acquisitions. The third section is the research limitations and prospects for follow-up study part, limitations mainly manifests in the following several aspects:in two kinds of sample size is larger, the use of nonparametric test results are not ideal; this article focuses on the different M&A subject to analysis the performance of M&A, and for different motives of mergers and acquisitions, mergers and acquisitions, no detailed study, makes the conclusion of the study the one-sidedness of the data; this span of time is not long enough, not for time series analysis, thus the enterprise after M&A performance of long-term effects of failing to get thorough research. In a follow-up study, will try to introduce the way of M&A of this new observation angle, including mergers and acquisitions, mergers and acquisitions and mergers and acquisitions motivation subject combined analysis of M&A performance change situation; at the same time, the data can be acquired under the conditions on the performance of M&A, long-term tracking of mergers and acquisitions, long-term behavior on firm performance effect of.CONTRIBUTIONSThe main contributions of this paper are mainly embodied in the following aspects:First of all, this paper chose state-owned enterprises and private enterprises of different ownership of two kinds of main body to carry on the research, first analyzes the efficiency theory, agency theory and transaction cost theory on M&A performance mechanism and influence the way, on the basis of empirical research, to build a comprehensive performance evaluation index system, by means of the principal component analysis method to get the comprehensive performance score, and an empirical test, through the use of a comparison group of M&A performance differences between the two, on M&A of state-owned enterprises by has practical significance, but also increase the empirical results convincing and realistic significance.Secondly, in the study sample time period on the full consideration, choose2008as the M&A year, from2007to2010as the research time. Since2006, the securities market of our country basically completed the reform of non-tradable shares, and introduced the" acquisition management practices of listed companies", at the same time the national launch of a series to promote the merger and reorganization of listed companies of the relevant documents, these major events impact on enterprise performance level will be shown in2007in the financial statements of the. Thus it can be seen from2007to2011, China’s listed companies’ M&A of a new development stage, select this one period on the performance of M&A for research, is the comprehensive factors account for the results, but also is more scientific and reasonable.