The Performance Of Chinese Listed Company Merger And Acquisition Analysis

With the constant increase of economy, science and technology, the mergers and acquisitions as an enterprise, it has achieved the optimal allocation of resources. What’s more, it is also a kind of very important way to strengthen their strength. It has gone through more than 100 years. During this period, five waves of mergers and acquisitions have occurred in the developed countries in North America and Europe. The first horizontal mergers makes capitalism economic competition from the initial free competition to monopoly competition direction; The rise of the second vertical mergers and acquisitions, capital of the capitalist countries highly gathered, big companies constantly improve themselves in the market share; The third mixed mergers and acquisitions has prompted the company continuously developed to the direction of diversification, promote the development of capitalism; The fourth emergence strategy driven mergers and acquisitions, prompting the development of capital markets to get fast, promoted the prosperity of the financial markets; The fifth generation of multinational merger and acquisition, emerged a large number of powerful multinational companies, promote the integration of world economy, formed the pattern of economic globalization 。 Obviously,from the initial horizontal mergers and acquisitions, vertical merger, acquisitions gradually to the subsequent emergence of strategic acquisitions, cross-border mergers and acquisitions, in the form of showing a trend of diversification since the reform and opening up as China’s rapid economic growth. Mergers and acquisitions spread to China. M & A is in the ascendant in China’s capital market. Today, China has become one of the world’s largest market for mergers and acquisitions. A large number of listing Corporation are trying to use mergers and acquisitions to enhance the comprehensive strength of the enterprise, so as to create more value. Capital market is the most active and the allocation of resources is the mergers and acquisitions, mergers and acquisitions can bring to the enterprise performance has become the focus of concern of theory circle. In 1993, Shenzhen Bao An for Yan zhong stake(marked China’s capital market to appear on the first merger cases), after more than 20 years of development, merger, acquisition and reorganization, as a kind of an important means of social resources reallocation, it encourages rapid accumulation of social capital, it for the adjustment of industrial structure and the improvement of enterprise comprehensive strength has a significant role. In China M & a market just twenty years of history, some of the listing Corporation completed the strategic vision of the company through mergers and acquisitions, the company’s overall strength and market competitiveness can be improved rapidly, embarked on a rapid development path. But China’s capital market and mature markets in the US and Europe, there are structural differences, the industrial structure needs to be further improved, and the system problems of the security market of our country and the listing Corporation governance structure defects, making China’s listing Corporation mergers and acquisitions for the majority of financial reorganization, therefore, it is necessary for China’s listing Corporation further study on M & a performance.In this paper, from the acquisition of the company’s point of view, the current status of listing Corporation mergers and acquisitions, to 2010 as the reference year, selected the 107 listing Corporation mergers and acquisitions, the listing Corporation as a sample, the financial data to find the Sample Firms 2009-2012, and selects 10 financial indicators from the two Sample Firms profitability, solvency, operation the three first grade indexes. As the basis on the 10 financial indicators, this paper uses factor analysis methods to build a comprehensive score model, analyze and summarize the financial data of the year before and after the acquisition of Sample Firms, using the principal component extraction factor, factor analysis, the variance contribution rate of each factor as the weight and score by the Sample Firms to measure before and after M & A. In each year the overall performance score, the overall performance of the annual calculation of the difference before and after the acquisition and merger of listing Corporation compared to a year ago, more than 60% of the sample companies in mergers and acquisitions in the M&A.A performance gain increment is one year after the acquisition, the listing Corporation in the overall performance has improved, but the improvement ratio becomes small. The second year after the mergers and acquisitions, mergers and acquisitions performance increment is negative to the listed company. The company’s performance improvement cannot continue. The results show that, in general, mergers and acquisition bring the positive performance in short time. But in the long run, the performance improvement is not sustainable. Mergers and acquisitions’ activities do not substantially improve the performance of the listed company in China.