Research On Influencing Factors Of M&A Performance In China’Listed Companies

In response to the financial crisis since2008, China government unveiled a$four trillion investment plan, state-owned enterprises benefit very much, at the same time most of the private enterprises in a financial strain affected by the financial crisis. This makes state-owned enterprises and non-state-owned enterprises displays the different diameter in the M&A market in the year of2009:state-owned enterprises on a large-scale mergers and acquisitions with the government’s support, and some non-state-owned enterprises had to be on the path of bankruptcy reorganization because of capital chain rupture. Under such a background, this paper explores that do stat-owned and non-state-owned enterprises have different M&A performance and what factors make these differences.At first, this paper reviews the research on M&A performances and then reviews basic theory including the basic theories of M&A, behavior financial theories in M&A decision-making and property theories, and analyzing the development and present situation of state-owned enterprises and private enterprises from China’s gradual reform path. After theoretical analysis, the empirical research is used to study the M&A decisions and M&A performance of the listed companies. The empirical results show that there are different M&A performances between state-owned and non-state-owned listed companies. Financing quantity is positively related to the M&A performances. Free cash flow and degree of social responsibility are negatively related to the M&A performances. The first shareholder’s shareholding has heterogeneity effect on M&A performance. At the end, this paper summarizes the research results and proposes policy recommendations:the government should set a clear itself in M&A activities, reducing the direct intervention and should strengthen the guide of M&A in policy making, etc.