Study On Stock Price Effect Of Chinext Listed Corporations’ M&a In China

After the reforming and opening up, Chinese capital market is rapid developing. In order to achieve effective integration of resources between enterprises, Mergers and acquisitions have become more frequent. At the same time, Growth Enterprise Market,also known as ChiNext, has become an important part of China’s stock market. There are a lot of emerging enterprises in ChiNext. These enterprises are the mainstay of national innovation and development. Compared with the main board, ChiNext includes many non-traditional industry enterprises. At present, the domestic researches on the M&A behaviors are mostly focused on the main board, instead of ChiNext. This paper intends to study the stock price effect of Chinese ChiNext Listing Corporations, in order to provide a reference for the investors of China’s stock market.This paper analyzes the characteristics and causes of the M&A behaviors of the ChiNext companies in China, to describe the formation mechanism of the price effects of M&A. This paper analyzes the stock prices before and after the announcement of the ChiNext companies’ M&A by Event Study Method. A positive effect of the M&A behavior is found. Using independent sample T test to carry on the mean equality test of the CAR of M&A behaviors, the paper has found that the stock price effect is obvious. At last,the method of regression analysis is used to analyze the factors that affect the stock price effect.The results of this paper shows that there are remarkable stock price effect during the process of ChiNext Listed companies’ M&A activities. The effect begins 5 days before the announcement of M&A. It is very fierce between 1 day before and 4 days after the announcement. During that period, the effect is fiercest.In this paper, the CAR of M&A and the M&A scale are positively linear correlated. The bigger the scale is, the higher the CAR is.If the activity is paid by cash, the M&A has weaker stock price effect than that paid by stock. After the announcement, the corporation with high cash ratio has fierce stock effect.The research results of this paper can help market investors understand the reaction of the ChiNext by providing reference for the investors. At the same time, this paper reveals the mechanism of the stock price effect of ChiNext enterprises’ M&S, and puts forward the corresponding policy recommendations. The paper intends to protect the interests of investors, and promote the development of China’s capital market.