Nature Of Equity, Industry Characteristics, And M&A Performance Of Listed Companies

Mergers and acquisitions, as a reorganization of the way of resources, gradually develop with the development of the stock market, is the inevitable product of the market economy. M&A could promote enterprises’ performance; reduce the cost of operation and management.Research on listed companies in mergers and acquisitions and its influencing factors, has been the hot issue of concern in the academic community. This article draws on the research of scholars, analyzes M&A performance of enterprise from the point of Chinese listed companies attribute and industry characteristics, then the paper studies the factors that influence M&A Performance of Chinese Enterprises.This article is divided into the following sections.On the one hand, the article analyzes the listed company M&A Performance. This section mainly analyzes the performance of listed companies in the trends before and after the merger. It selects ROA, ROE and the yield of the main business to reflect the performance of the company. Then it uses SPSS.20software to conduct factor analysis for the listed company financial data in five years. Based on the above results, the paper construct a composite score function to study the trend of the listed company’s performance. We conclude:M&A performance of listed companies shows the inverted V-shaped trend; the state-controlled listed companies Presents an inverted V-shaped change in trend before and after the performance in mergers and acquisitions, the private holding listed companies showed the opposite trend. M&A can promote the performance of private enterprises rather than the state-controlled listed companies.On the other hand, the paper analyzes factors that affect the performance of listed company M&A. It selects the stake of the largest shareholder, the ratio of the stake of the second largest shareholder and its largest shareholder stake, proportion of independent directors, the proportion of outstanding shares as explanatory variables, and selects the size of the acquired company assets as control variables, industry characteristic and equity properties as dummy variables and selects the difference between the listed company M&A performance or the performance of M&A, then we establish a multiple linear regression model. Regression results show:the stake of the largest shareholder significantly affect the short-term performance of the listed companies and Presents a significant positive relationship; Equity balance degree, and the proportion of independent directors on the interpretation of the performance of listed companies is relatively weak; The proportion of outstanding shares in the long run, shows a positive correlation on the M&A performance of listed companies.