An Empirical Study Of M & A Performance Of Listed Companies Affected By The Economic And Financial Cycle

With the continuous development and improvement of the Chinese market, the competition between enterprises is gradually fierce. The publication of Administrative Methods of Listed Companies’ Purchase in 2002 marked that the Chinese M&A has moved towards standard. Since the reform of non-tradable shares in 2005,Chinese listed company M&A in China is increasingly active.By studying the influence of economic and financial cycle on M&A volume, some scholars found out the typical characteristic that the M&A wave is affected by the economic and financial environment. This paper argues that, it’s necessary for the economic and financial environment to have a significant impact on M&A performance, due to their affection on the business activities. However, the current literatures of economic and financial cycle impacting on M&A performance are scanty.The paper attempts to analyze the influence of the related indicators of economic and financial cycle on M&A performance, then exploring the periodic characteristics of M&A performance, and studying its correlation and collaborative with the economic and financial cycle, which to a certain extent, to deepen the understanding of M&A activity in China and explore the influence of external economic conditions on M&A.Firstly, it uses CAR to investigate the differences between M&A performances before and after M&A in different years. Then, analyzing the influence of macroeconomic and financial variables on M&A performance, and the lagging impact of economic and financial variables on M&A performance. Finally, studying the periodic characteristics of M&A performance and exploring the collaborative between M&A performance cycle and the economic and financial cycle.Through empirical research, the paper found that the M&A performance is affected by economic and financial cycle to some degree, and the M&A cycle has a significant lag relationship with economic and financial cycle.