Empirical Study On Adding Value Effect Of Chinese Companies’ Mergers And Acquisitions

At present, China’s economy has entered a transitional period, and the purpose is to deal with the challenges of the domestic and foreign, to seek economic steady development of China. However, there are still some problems, for example, redundant construction industry, low industrial concentration, lack of the capability of independent innovation, weaker market competitiveness, etc., affect the quality and competitiveness of the economic operation, and restrict the efficiency of China’s economic transformation. Mergers and acquisitions is the fastest means to allocate resources effectivel. It benefits to evitalize the resources of social, and makes them more efficient use and distribution, improve the competitiveness of enterprise, by guiding the high efficiency of enterprises to carry out mergers and acquisitions. Therefore, government also issued a series of policies and regulations which is advantageous to the M&A to provide a loose policy environment and market environment. In general, the number of M&A is increasing in China in recent years.Efficiency theory shows that mergers and acquisitions can achieve "synergistic effect" by both sides of the resource sharing, capabilities and knowledge transfer, making the two sides of mergers and acquisitions get the benefit of "1+1>2", to create new value greater than the sum of mergers and acquisitions both sides enterprise value independently of the new value, so as to achieve business value added. From the market perspective, merger and acquisition is theoretically able to bring added value to enterprises, but during the period of China’s economic restructuring and promoting the companies to have mergers and acquisitions, whether mergers and acquisitions can realize the increment effect, theory and reality are consistent, based on this, this paper collected 985 mergers and acquisitions cases from January 1,2010 to December 31,2012 which in the stock market listing Corporation A, after the sample selection and data collection, using event-study method to do empirical research, then make judgment and analysis of the China listing Corporation mergers and acquisitions value added.The results show that:overall, our listing Corporation mergers and acquisitions, the enterprises did not have a clear positive effect on mergers and acquisitions value added. Obviously, while the positive effect of value-added is of short-term, positive value only in the first 15 days after the announcement date, during the study period [-30,30] has had a value of negative effects.Then, this paper analyzes and summarizes the reasons for the failure of mergers and acquisitions, mainly from the problem of companies and the impact of the external environment to analyze the reasons for the failure of the M&A. Finally, the relevance of solutions based on the analysis and summary of the reasons for the failure of mergers and acquisitions.