Empirical Study On The Performance And Different Payment Preference Of Listed Company Of Mergers And Acquisitions

China is now under the background of the transition of market economy and relatively steady economic growth. As for the deepening reform and openness, basically completed reform of the shareholder structure and related laws and regulations about mergers and acquisitions which are being completed, there will be more and more favorable terms which are created for the listed companies. Mergers and acquisitions are becoming important approaches for Chinese companies to increase their value and competitiveness, integrate industry and resources, achieve leapfrog developments and compete internationally.The choice of payment methods, which is the last the most important step of mergers and acquisitions, is connected with interests of both sides and will influence the success of whole process. There are still many problems in the practices of mergers and acquisitions in China due to a relatively late start and immature capital markets, and one of the problems is that there are fewer choices of payment methods and it is quite hard to promote new ones. There are some changes in the payment methods as for basically completed reform of the shareholder structure and related laws and regulations about mergers and acquisitions which are being completed, but the theory framework is still remained to be completed and it is impossible for us to clone foreign theories and models, so we must pay much attention to the topic of payment methods in mergers and acquisitions.Based on the review and conclusion of former findings, the author studies on whether the influences that brought by different payment methods are the same by using empirical analysis, hoping that the companies could use appropriate methods and achieve ideal results during mergers and acquisitions. Given the important status of manufacturing in Chinese economy, we choose listed companies in electronics and machinery from January 1,2011 to December 31,2012 as our sample to study on. By using event study and multiple regression models, we find out that:(1)The acquirer corporation’s stock price movements can reflect the value change, the event study method can be used on the research of Chinese mergers and acquisitions short-term performance.(2)Different payment method can lead to the different responses of the stock market, the highest amount of the shareholders extraordinary returns is stock payment, followed by cash payment, the last is mixed payment.(3) The financial leverage, control structure, growth ability and the merger scale of acquirer company will also have an impact on the short-term performance of mergers and acquisitions.Finally, according to the empirical results combined with the actual situation of Chinese mergers and acquisitions market and we put forward to some reasonable advice about the choice of payment methods and the key factors of successful mergers and acquisitions from other aspects.