The Post-Merger Performance Of Chinese Listed Companies

Merger and Acquisition in China capital market has been quite heated phenomenon these recent years, therefore this paper makes a study of listed acquirer’s performance before and after merger and acquisition deals through accounting-based method. We draw a conclusion through empirical research that listed acquirer does not show immediate and significant improvement after the purchase, however, state-owned acquirer show a significant decrease in corporate performance in three years after the deal. The SOE’s performance might be related to its M&A type, and that deals with administrative-oriented intention may cause SOE’s performance go down after purchasing bad performance targets.