The Research Of The Effect On Stock Price By Chinese GEM Companies’M&A

This article selects M&A events sample from the beginning of GEMestablishment till the end of2013. Because the event study method is chosento be the research method, so in this paper, according to the selection criteriaof event study, eventually217sample data have been selected for research.Through collecting the price before and after the day of takeover disclosureannouncement, found that stock price not only appears abnormal fluctuationon the date the announcement. Dim T as the day of disclosure, first obviouschanges appears in interval [T-20, T-15], then sustained upward trend begins,and the first wave rise end at T-9. The second wave rise begins at T-3, and endsin [T, T+1]. The most obvious features in [T-3, T+1] are comparatively largeday return rate. The t test of cumulative abnormal return (CAR) is positivelysignificant in [T-4, T],[T-3, T],[T-2, T]. But share prices continue to fall,once the disclosure done, and the cumulative abnormal return (CAR) T test isalways significantly negative till T+20.For further research of the above phenomenon, this paper conductsanalysis on subsamples, which is divided by the control change or not, the fourpurposes of M&A, the three ways of M&A and the two kinds of payment.Then comes up with the conclusion: in the process of M&A, control-shiftM&A events are more favored by investors than non-shift control; three typesof M&A events: industry integration as the purpose, block purchase as the way,cash as the payment, are consistent with the overall samples; horizontalintegration as the purposes has a better performance on stock price.