Empirical Study On M&A Performance In Chinese Automobile Listed Companies

China’s automotive industry is developing rapidly in recent years, annual sales ranks first in the world, but with the continuous expansion of business scale, its inherent flaws gradually exposed, companies dispersion distribution area, the strength of the weak and the production of a single product has become an obstacle to its development Key factor. Government to promote the industrial development of a number of policies have been put forward, clearly encourage enterprise mergers and acquisitions activities, to integrate resources, the strengthen strength of enterprises.On the other hand, owe to M & A activity in the international capital markets, our M & A activity has intensified in recent years. From domestic to overseas mergers acquisitions, sharply increasing the number of participating companies and the amounts involved. Research on M & A fundamental concern of both motivation and performance, In academia has proven empirical method. Theory suggests that M & A activity by companies can enhance their own strength, expand market share and to further improve their international competitiveness, have an impact on industry structure and concentration;simultaneously intensive social resources, changing production pattern. But in practice whether the acquisition can really achieve the goal remains to be seen. Chinese scholars study the aspects significantly behind other countries, which is China’s mergers and acquisitions occur late there is a certain relationship. This article is in reference to previous studies, according to auto industry policy has been introduced, the performance by the listed auto companies have made acquisitions empirical analysis.From the short-term and long-term perspective, the paper chooses occurred in 2009-2010 automotive mergers and acquisitions activity data samples, using event study and research method of accounting empirical research respectively. In the short-term performance of the inspection, fifteen days before and after the M & A activity, cumulative abnormal return of sample data and the average excess return is calculated on.Through the stock price volatility inquiry concluded:M & A did not give business to bring increased wealth. It is clear that before the merger activity takes place, the stock began to rise sharply significant, indicating that the information M & A activity has been leaked before the official announcement, there is a serious problem of information leakage stock market trading. On the other hand, the performance of the acquired companies has increased. This shows that the acquired company can make a profit in the short term, from the temporary business combinations and expansion perspective, mergers and acquisitions really promote the development of both sides, but it does not mean that a more long-term development can bring benefits.In the long term empirical, the paper obtained either business or acquisition of the acquired company are not implemented to increase wealth. That is the target initially set industrial policy guidance merger is not completed, in the long term M & A less than ideal. Therefore, based on empirical analysis and theoretical interpretation on,we made an analysis of the existing situation and in accordance with China’s capital market performance in government and business point of view put forward relevant proposals.