Empirical Analysis Of Characteristics Of Target Company In Eqauity Acquisition

In 2015,China's M&A market was extremely active.According to PricewaterhouseCoopers' 2015 China M&A Market Review and 2016 Outlook,5,137 equity acquisitions have happened during the entire year,and the trading volume has reached 734 billion U.S.dollars,rising 84 percent over levels of a year ago.In addition,insurance funds have risen in the capital market and merged more than 30 listed companies,more than a half of which were state-owned companies in large-scale.The activeness of the capital market is inseparable from the impact of economic policies.As China's economy entered a "new normal state" in 2015,which means better quality and efficiency,the economic structure has to be constantly optimized and upgraded,and it must be driven by innovations instead of investment.From the experience of five previous merger waves happened in the United States,we can tell that mergers and acquisitions are important means of transformation and promotion of economy,and the economic transformation,on the other hand,is the internal driving force for mergers and acquisitions.This article studied target companies,which have been successfully merged in Chinese A-share market during this merger wave period,to find the characteristics of the target companies in the Chinese M&A market in 2015 and to reveal the complexity of the capital market and M&A market in China under the "new normal state".In this paper,we divided the target companies into several sample groups according to the background of the largest shareholder of the company,the takeover method,and the background of merging company,and analyzed several characteristics of target company,such as profitability,capital structure,ownership structure,growth,industry concentration,using statistical analysis and Logistic regression.