Empirical Study On The Value Of Acquisition Of Chinese Financial Listed Company

Financial industry is an important part of market economy in our country, which is making great contributions to the development of our country’s economy. There are many Mergers and Acquisitions events happened on Chinese financial industry in recent years, especially after the outbreak of the global financial crisis in 2008. However, empirical studies of acquisitions of financial firms are seldom, which more are concerning to the Banking and Securities firm in China. Financial crisis brought the disaster to the world, but it’s also a baptism. Foreign research about the theory of M&A of listed companies is more perfect than domestic, but domestic scholars are also increasing on the depth of research in the field of company mergers and acquisitions in recent years. Despite of theory research and practice research relatively mature and perfect, but with the entire economic environment changes, financial market innovation process is also reached unprecedented speed and height. Therefore, the study of mergers and acquisitions also should keep pace with The Times.Combined with historical reasons and special national conditions in China, Chinese scholars spend more energy to study the acquisition value of traditional industry. But as the national living standard improved, the financial industry is becoming more and more important in the national economy. So the study about the acquisition value of the financial industry is few in the early, and increased in recent years. Today, the fog of the global financial crisis has gradually evaporate, the financial sector has also been gradually adjust and recovery. So it’s time to update the study. In addition, the existing researches generally take a single research method to investigate the value of acquisition spillover effect, and this paper will use two methods to study the value spillover effect of acquisition of financial sector. In the perspective of the entire financial industry, it is beneficial to promote the steady development of the financial industry and help the company to make the right decision of acquisition.To sum up, this paper will study the acquisition events on Chinese financial listed firm from 2010 to 2014 by using event study methodology. It was found that cumulative abnormal return of the financial company is not significant afteracquisition, and probably acquisition news has been leaked before the announcement. At the same time, according to the availability of financial data, this paper using the EVA methodology to study the acquisition events on Chinese financial listed firm from 2010 to 2012.The results show that the EVA is significantly improve in the acquisition Year, but the speed of improve is falling year by year after acquisition. Finally, to combination of these two kinds of empirical research conclusion, it is concluded that the value spillover effects of acquisition of listed companies of China’s financial industry are not obvious for a long time, and the companies should improve the medium and long term value after acquisition.