An Empirical Study On Relationship Between Ownership Structure And M&A Performance

"CPC Central Committee decision on deepening reform of the overall number of major issues" proposed on the Eighteenth meeting of the Third Plenary Session held in 2013 put forward "actively develop the mixed-ownership economy". In 2014, "Government Work Report" further put forward "accelerate the development of mixed-ownership economy". With the national attention on mixed ownership economy and related policies and regulations’ promulgated, the development of mixed-ownership economy has become the basic direction of the major state-owned enterprise reform. Mergers and acquisitions (M & A) is one of the ways business expansion and development. M & A can achieve integration between enterprises of different ownership of the property. In recent years, the number of M & A transactions is on the surge in China’s securities market, and therefore in the process of developing mixed-ownership economy, it is necessary to fully understand the role of mergers and acquisitions. Mixed ownership economy is a mixture of various economic components and division of ownership is the basis of the nature of the elements of the ownership structure of the shares.Therefore, this article will research performance of M & A from the perspective of ownership structure. The first study is about the relationship between ownership structure and performance of M & A, followed by in-depth analysis of the relationship between property ownership and the performance of M & A.This article establish the M & A performance evaluation method on a number of M&A performance evaluation methods, select the A-share listed companies’ deals from 2007 to 2012 as samples of this paper empirical research. This study reached the following conclusions:(1) ownership concentration and equity balance degree were significantly positively correlated with the performance of M & A, that is more concentrated ownership, mergers and acquisitions, the better the performance of M & A, the higher the degree of equity balance, the better the performance of M&A, this conclusion has been confirmed in the state-owned enterprises and private enterprises; (2) compared with the state-owned enterprises, private enterprises have better performance of M & A; (3) the M & A performance of different property ownership enterprises is better than the M & A performance of the same property ownership enterprises.