An Empirical Study On The M&A Performance Of The Listed SMEs

M & A has become an important means of modern enterprises to achieve rapid business expansion and efficient allocation of resources. The Research on M & A has been the focus of capital market research. Since the reform and opening up, along with the establishment of China’s capital market, the development and improvement of our M & A activity has become even more frequent, and the number of companies involved in mergers and acquisitions amount is also increasing. SMEs as an important force in the market economy indispensable in alleviating employment, active market, economic restructuring, promote of economic growth has played an important role. However, small and medium-sized enterprises also exist in small scale, the shortcomings of large fluctuations, and weak anti-risk ability. If you want to rely solely on SMEs to achieve leapfrog development through natural growth pattern, which is bound to face the problem of slow development, we can not seize market opportunities and achieve rapid business expansion, has a high economic cost and time costs. Therefore, more and more SMEs choose M & A activity to achieve business expansion. The establishment of SME board build a multi-level capital market, shows that the small and medium-sized enterprises in China’s capital market has a pivotal position, and provide a good financing channel for small and medium sized enterprises, relying on in the capital market of the enterprise merger and acquisition has become a modern small and medium-sized enterprise development and expansion of the path. In the case of the deepening of economic reform, M & A activity for the development of SMEs in China has important practical significance, and therefore answer the question whether the acquisition value creation is particularly important for SMEs. In this paper, the theoretical basis of efficiency theory, agency theory and signal theory above, from the market performance and financial performance of both companies to analyze whether the merger SMEs create value.This paper consists of five parts. The first chapter is the introduction. Firstly, the paper introduces the background and significance of the research of the enterprise merger and acquisition, and then review and combing the relevant enterprises mergers and acquisitions performance research literature, followed by the research ideas and methods and new ideas for possible. The second chapter is the definition of related concepts and theories, in this part, on mergers and acquisitions, mergers and acquisitions performance and other related concepts were defined, has carried on the elaboration to the efficiency theory, agency theory, signal theory and other theories. The third chapter is based on the basis of theoretical analysis to draw the research hypothesis. The fourth chapter is empirical study, this paper selects the 2012 Shenzhen SME board has M & A activity as samples, drawing on existing research methods and models, to empirical test the short-term performance and long-term performance of SMEs. The fifth chapter is the conclusion of the study, policy recommendations and the lack of research and prospects. The study found:(1) the Listed SMEs in M & A activity in the short term bring a positive wealth effect to the acquirer, to improve the company’s short-term performance of stock market performance. (2) M & A activities in the Listed SMEs have caused losses to the buyers in the long term, and have not created value for the enterprises. (3) After classification according to the types of M & A, we find that compared with the diversification of mergers and acquisitions, M & A in the same industry to a certain extent to the buyer to bring the performance improvement.