An Empirical Study On The Performance Of Mergers And Acquisitions Of Financial Enterprises In China

With the development of global economic integration and financial liberalization, many international financial institutions have been realized the rapid expansion of the scale and business by the way of mergers and acquisitions,and which makes many huge financial groups. While,the M & A activities of China’s financial sector was began in the last century, since joining the WTO in 2001, C hina’s financial sector have gradually opened up, which brings many opportunities to the development of China’s financial industry, and also makes many foreign financial institutions have stationed in China, to open and control C hinese market, which exacerbated the competition of the domestic financial industry. Therefore, in order to seize the opportunity and against the competition, our country accelerated the pace of mergers and acquisitions of financial industry, and the M & A activities of C hina’s financial sector had a qualitative leap not only in the quantity, but also in the amount by 2013. While,there is a question that whether the frequent M & A activities can really bring performance improvement of financial enterprises, it needs to study and solve immediately.Based on the above background, the present paper analysis C hina’s current financial enterprises merger situation, the causes and main problems based on the M & A theory of the financial enterprises. Then select 30 M & A activities of the listed financial enterprise of China from 2010 to 2014, and has carried on the empirical analysis by using event study method.The empirical study found that, the M & A activities of China’s financial enterprises only improve certain performance of the enterprise in a short-term just before and after the merger announcement date, in the long run, these M & A activities did not produce substantial performance of enterprise promotion. After the empirical analysis in-depth, I found that the M & A activities,which completed in the mixed payment or relate to the overseas enterprises, can improve performance of the enterprise in the certain degree. Finally, on the basis of the empirical analysis, aiming at the existing problems of M & A activities of China’s financial enterprises, puts forward some recommendations for improving the performance of M & A activities of China’s financial enterprises, mainly includes the introduction of financial M & A legal laws and regulations, reduce administrative intervention and the perfection of capital market and securities market by the government,and change the method of M & A and improve the post merger integration of the enterprise’s own level.