| Abstract:Since2003, the global mining industry has entered into the third cycle which is droved by industrialization and urbanization in emerging countries represented by China. Since2002, a global mining capital market consolidation trend aroused, especially since2007. In the spring tide of the global search for mining resources, China has already become an important buyer. The characteristics of mining M&A in our country is numerous and complicated, in both the motives and modes of M&A between the acquirers. This paper is based on the mining boom, focused on the market reaction to mining M&A of listed companies and how the characteristic of M&A influence companies’market performance.First, this article defined concept on merger and acquisition, and reviewed the literature related M&A performance from civil and foreign scholars. Then, an M-S-E model (motivation-structure-effect) was established based on existing theories and studies. We used Event Study model to calculate the short-term Cumulative Abnormal Return, in the same time, this paper analysis factors, such as M&A motivation, connection transaction attribute and payment which influence M&A performance with combined Variance Analysis and multiple regression analysis.The empirical results show that in the mining boom, market reaction to mining mergers and acquisitions is obvious. In the window of (-15,15), M&A increases the wealth effect of stockholders, and the CAR is13.53%. From the point of the factors influencing M&A market reaction, CAR of strategic M&A is significantly higher than that of financial M&A; M&A events of related party transactions of the market reaction is significantly higher than the unrelated party transactions; CAR of asset M&A is significantly higher than that of equity M&A; M&A which is paid by cash is more popular than that paid with equity. The acquisition of non-metallic excess yield is slightly higher than the metal mergers and acquisitions, but not significant.At last, this article suggested that mining merger and acquisition is an important way to help companies maintain growth, and companies should implement strategic M&A that is related to their business. In the process of M&A, companied should design the trading structure carefully. |
