The Research On The Wealth Effect To Bondholders Of M&A Events

Recently, China’s economy is developing wonderfully, and the bond-financing havebeen becoming another important way of acquiring capital for listed company. Comparedto abundant theoretical and empirical literatures abroad on the wealth effect ofM&A-related company’s bondholder, there’s few literatures in domestic researches. Sothat’s the significant of this thesis.At first, the thesis summarizes the theoretical and empirical research about wealtheffect to creditors of M&A-related A-share listed company which had been brought up byresearchers abroad and domestic. Then, using172A-share listed company’s bonds andapplying the market model,the thesis calculate the cumulated abnormal return(CAR) ofM&A events that happens from the January of2008to the December of2012.The resultshow that M&A have a positive effect on the bondholder’s wealth,but only significantly30or20days before the announcement days of M&A events. On the basis of above result,the thesis brings forward the econometric model which can measure the factors that affectthe bondholder’s wealth effect. The empirical analysis finds that the factors such ascompany’s ownership, financing ability can notably affect the bondholder’s wealth. More-over, evident is found for M&A’s having lead to wealth redistribution between share-holders and bondholders in domestic condition. At last, the deficiency of regulation onM&A and protection of bondholder is analyzed, and the corresponding tactics is broughtup.