A Study On The Effects And The Influencing Factors Of Mergers And Acquisitions Of Chinese Small And Medium-sized Listed Companies

There are two ways for enterprises to achieve development and growth,one is internal accumulation and the other is external mergers and acquisitions(M&A).Compared with the internal accumulation,M&A are more efficient to achieve capital concentration,economies of scale,industrial chain expansion,diversification and other objectives.In practice,mergers and acquisitions are widely used by modern enterprises to achieve those goals.With the development of the waves of mergers and acquisitions,China's small and medium enterprises(SMES)have joined the M&A army,and in recent years the momentum of M&A becomes stronger and stronger.This paper is a study on M&A performance of Chinese small and medium-sized listed companies and the factors that affect the M&A performance.This paper selects 65 small and medium-sized listed companies,which have conducted M&A in year 2010 to 2014 as a sample,and calculates AAR and CAR to study the short-term M&A performance.As for the long-term M&A performance,this paper chooses 17 financial indicators for principal component analysis.This paper also uses the regression analysis method to explore the influencing factors of M&A performance of SMES.In the multiple linear regression equation,the explanatory variables include industry relevance,M&A scale,payment method,ownership concentration,executive shareholding ratio and whether the M&A is related transaction,and the dependent variable is the change of M&A performance score.The study draws the following conclusions:(1)The sample companies gain a positive ARR and CAR.(2)Performance changed significantly in the year of M&A and the year after M&A.After the second year of M&A,the company's performance tends to be pre-merger level.(3)profitability improves,but ability of solvency,operating capacity and cash flow capacity declines.(4)Related M&A is more conducive to enhance the performance compared to non-related M&A.(5)Large-scale M&A tends to enhance short-term performance,but is harmful to long-term performance.(6)The concentration of equity,the proportion of executives' holdings influence the performance negatively,M&A between related parties have a negative impact on the performance.At last,this paper puts forward some suggestions for M&A activities.