| In the history of the world's economic development,there are five M&A waves,which always follow the laws of economic development,and closely related to each period of the economic cycle.Since the 1990s,economic globalization and financial liberalization accelerated the economic development and the process of the fifth M&A wave,and this is also one of the biggest M&A wave of the history,which swept many industries,such as computers,media,communications and finance.The mergers and acquisitions of financial industry are the most attractive ones which worth concerning,especially the mergers and acquisitions between banks.Parts of the world bank set off a surge of mergers and acquisitions to expand the scale of operation,enhance the capital strength,improve the strategic competitiveness and the ability to resist risks.To the enterprises,there are two ways to accelerate the development.Firstly,they can accumulate capital by reducing costs.Secondly,they can expand scale by ways of mergers and acquisitions.Under the premise of the analysis of pros and cons of the two ways,we know that M&A has increasingly become the main way of enterprise development.For mergers and acquisitions among banks,how to evaluate the efficiency after its acquisition,as well as judging the success or not of the M&A,is the main question this article need to explore.Beginning in the late 20th century;M&A of China's commercial banks is playing an increasingly important role in the financial markets.There are two types classified in accordance with the M&A type:government-led and market-oriented.This essay selected seven typical cases,such as:Guangdong Development Bank merged the Bank of Trust of China in debt crisis in 1996.China Construction Bank merged the Trust Investment Company of China's Agricultural Development under the policy of the government in 1997.China Industrial and Commercial Bank merged the Hainan Development Bank out of debt difficulties in 1998.China Everbright Bank merged the China InvestmentBank in 1999,Shanghai Pudong Development Bank acquired several urban credit cooperatives in 2001,China Merchants Bank bought the Wing Lung Bank of Hong Kong at high price in 2008.And the acquisition between the China Pingan Group with Shenzhen Development Bank by changing the shares of Pingan Bank in 2010.The first three M&A cases were under the guidance of the government,whose main purpose was to resolve the debt problem faced by the acquired company in order to ease regional financial risk.But there always brought to the acquiring company with heavy debt burden after the merger;the late four cases illuminated that in the process of gradually improving market mechanisms,the commercial bank mergers and acquisitions in China would gradually transform from planned to marketing.Under the free market mechanism,one can reach the purpose of expanding scales and increasing returns by choosing participator of the M&A freely.After the analysis of literature on the national bank mergers and acquisitions efficiency,we found that foreign analysis on the efficiency of bank mergers and acquisitions mechanism has been relatively perfect,while the literature is relatively scarce in China due to bank M&A is just emerging.Based on the theories of business management,management science,economics,and financial,this thesis adopts interdisciplinary research methods to analyze specific case studies combined with data analysis.When it comes to analyzing data,a full range of analytical methods named DEA which supplemented by financial data analysis,is the main method.That is to say,this thesis will combine analysis of financial indicators with DEA(data envelopment analysis)to analyse the seven typical cases of Chinese commercial bank mergers and acquisitions.Due to a less focus on financial indicators,the paper will pay attention to the most basic financial indicators such as total assets and net analysis.The DEA analysis of X-efficiency which contains resource allocation efficiency,pure technical efficiency and scale efficiency changes before and after the mergers and acquisitions.The efficiency of bank mergers and acquisitions can be in-depth analysed and compared on the basis of X-efficiency decomposition,and come to the conclusion.The analysis results proved the previous analysis assumes that if the main side is small and medium-sized joint-stock commercial banks,it would endure heavy debt burdens in the case of government-led mergers and acquisitions than the state-owned one,which also need further government policy reforms to resolve.In the market-driven mergers and acquisitions,the X-efficiency of the main side will gradually acquire more from M&A and maintain its efficiency in the process of gradual improvement of China's market mechanism.After analysis of the cases in the process of mergers and acquisitions in China's commercial banks,the article comes to conclusions,which contains:(1)the merger efficiency in government intervention under the auspices of the bank is significantly lower than in bank mergers and acquisitions under market principles.(2)government-led M&A is not conducive to the development of the main side,and is also not conducive to achieve economies of scale efficiency.(3)In the government-led mergers and acquisitions,its main side's strength also determines by the ability to bear the burden of development after the merger.(4)China's future bank mergers and acquisitions should minimize the Government's administrative intervention and should follow the principle of profit maximization under market economy conditions,and then optimized the M&A through the operation of the market mechanism.At last,This article gives specific ideas and planning proposals on the development of China's commercial bank mergers and acquisitions.They are:(1)gradually changing the role of government in the merger,(2)gradually developing from the direct M&A to indirect acquisitions,(3)changing the M&A between the strong and weak to the development of combination,(4)the development of domestic M&A to cross-border mergers and acquisitions,(5)developing from horizontal mergers and acquisitions to mixed M&A,and achiving the aim of creating a large financial holding company. |
PDF Full Text Request