The Overseas M&A Performance Of China Commercial Bank

Cross-border merger and acquisition has become the major method of financial industry’s international operations. With bank’s physical operation network expanded to places all over the world by Cross-border M&A, the financial capital also has reached to an unprecedented altitude at the same time. In the tide of bank’s cross-border M&A of European and American countries, facing the new "in-out" open policy in china, how can Chinese banks fight for survival, development and power is not only an economic theory with great historical significance, but also a very realistic topic in the economic practice.The research chooses all overseas mergers and acquisitions since the Industrial and Commercial Bank of China went public as the research object, the demonstration mainline of this article is to analyze the main question:Can and how cross border merger and acquisition increase bank performance? The writer bases on the theories on bank cross border M&A to explain the relationship between the bank’s cross boarder M&A and performance or efficiency, then explore how to increase bank performance base on the theories. And then take the Industrial and Commercial Bank of China for example to analyze merger and acquisition. First up is introducing the process of merger and acquisition. Then, this research will make an analysis of ICBC’s overseas mergers and acquisitions performance, mainly from the two aspects:the wealth of shareholders’short-term effect and long-term bank financial performance. On the one hand, this paper uses event study method to calculate abnormal rate of return of ICBC’s three influential mergers and acquisitions, and then analyzes the influence on shareholders’short-term wealth effect. On the other hand, this paper uses the financial index method to investigate the overseas M&A impact on ICBC’s long-term financial performance from several ways. Finally the paper puts forward the corresponding measures for the feasible overseas M&A from two aspects:the target selection and the subsequent integration, hoping to help our country commercial banks make successful investment in overseas mergers and acquisitions.