An Analysis Of The M&A's Impact On The Stock Price About Listed Internet Companies In China

Since the enterprise has produced,the purpose and value of the company is to develop and grow.Mergers and acquisitions,gives enterprises a short cut of business expansion,strategic adjustment and diversified operation.A lot of mergers and acquisitions will be caused by the improvement of the science and technology and the expansion of thinking.With the rise of the Internet,a series of activities have become more and more frequent,such as Internet enterprises listing and financing,M&A,restructuring,business expansion,has gradually formed the trend of the sixth wave of mergers and acquisitions.Competition of the Internet industry is intense,the enterprise should to stand out in the competition,occupy the dominant position,in addition to strengthen its ability to maintain customer stickiness,also need through mergers and acquisitions to gain the competitive advantage,not only weakened potential competitors,and enhance their own strength.The research on the Internet enterprise's M&A can make us judge whether the M & A activities of the Internet can really improve the enterprise value,maintain shareholder's interests and keep the customers' stickiness.This research uses the event study methods,select 94 cases of Internet companies as a sample of M&A between January 1,2008 and December 31,2015.And this study use Cumulative Abnormal Return(CAR),take(-30,30)days as the window period,to analyze the influence on short-term stock price of the horizontal,the vertical,the mixed M&A,as well as the comprehensive M&A.At the same time this paper take 53 cases of M&A events as samples between January 1,2009 and December 31,2013,using Buy-and-hold Abnormal Returns(BHAR),taking(0,24)months as the window period,to analyze the influence on long-term stock price of M&A.We eventually come to the conclusion that,M&A will pull the company's stock price in the short term,have a positive effect on the enterprise,and in the long term,M&A will have a negative impact on the stock price.Early disclosure of M&A and market investors prefer short-term trading is an important reason for the results.This study consists of five parts,the first part,introduction,briefly describing the research background,research contents and research methods,literature review;the second part,theoretical basis and definition,introduce the definition of M&A and Internet enterprise in this paper and the induction of the performance of M&A;in the third part,the general analysis of the M&A's impact on the stock price of the Internet enterprise,the paper expounds the present situation and the characteristic of the Internet enterprise M&A;the fourth part,the empirical analysis of the impact of M&A on the stock price.Through the event study methodology analysis to analyze the volatility of the stock price before and after the merger;the fifth part,the summary and outlook.