A Study On M&A Performance Of The Small And Medium Listed Companies

In July 1984, Baoding textile factory merged Baoding Knitting equipment factory through assuming all debts of the target enterprise,which started the Chinese enterprise merge. With China’s accession to the WTO, in order to adapt to the international market competition,domestic listed companies have chosen to merge other enterprises to increase the core competitiveness. In April 2005, along with the innovation in our securities business, all the shares have been allowed to circulate freely. In September 1st,2006, as the first law for full circulation of Listed Enterprise Acquisition, the implementation of listed companies acquisition management approach has promoted Chinese Listed enterprise merger tide. Under growth of the domestic economic and acceleration of industrial integration, Chinese Listed Companies merge activity increases more and more. The quantity of four quarter of 2011 has reached 5772 which has broken up the records of the past five years’. What will happen to Small and medium enterprise board’s performance? The study on this problem not only causes the attention of the theory and the practice departments, but also has the important practical significance.This paper will use the data form 2006.09.01 to 2012.02.29, base on the event study method and accounting research method, analysis the sample data. According to the different types of the merge activity, from a different angle, analysis performance of the small and medium enterprises merge activity in short term and long term. Conclusion as follows:in the short term, merge can’t significantly improve performance of the small and medium-sized enterprise; in the long term, merge can improve the performance of the small and medium-sized enterprise; for small and medium enterprises, either acquired or the target side, the performance of Agreement transfer assets is poorer than other merge types.In order to improve the performance of mergers and acquisitions of Chinese small and medium-sized enterprises, this paper try to provide some advice for the regulators to regulator merge activity, guide enterprise to merge and improve merger environment, for the managers to improve the merge efficiency, for the investors to invest stock. For regulators, they should strengthen merge policy, supervise merge activity on SME board, strengthen capital market information disclosure mechanism, resolutely resist insider information, the black-box operation, create a relaxed atmosphere help enterprises to develop a clear position, suit their own merger and acquisition plan, guide rational mergers and acquisition. For enterprise before merge, they should set up an information collection group or the related organization to appoint to collect the information through a variety of formal, informal channels; after merger, they should pay attention to the informal information communication and collaboration, put enterprise strategic management target through the whole process, improve enterprise position. Investors should learn to vote with their feet, in a long term, choose the good stock of the merger company with competition strength, continued development, which guarantee the small and medium-sized enterprises to obtain a stable investment, at the same time, give investors continued investment income.