Research On M&A Performance Of Chinese Listed Corporations

With the development of the global economy and the acceleration of the integration process,market competition in the global market has become increasingly fierce.In order to adapt to changes in the market environment,to be at the core of a fierce competitive environment,and to ensure companies are not defeated by other companies in the process of development,more and more contractual options have been achieved through restructuring,and mergers and acquisitions are also in the process of production and business operations.Playing an increasingly important role,M&A and restructuring activities in the current stage of business operations are mainly through the adjustment and integration of internal and external resources of the enterprise,access to resources with core competitiveness,and thus expand the market share of enterprises to achieve the long-term development of the enterprise.Domestic and foreign studies have found that large-scale enterprises have many mergers and acquisitions and reorganizations.From the perspective of the actual development of China's capital market,we have experienced rapid development over 20 years.Our country's capital market has gradually developed into a strong concept of capital maintenance and operation maintenance.M&A activity has become an integral part of the long-term development of China's capital market.Therefore,in order to clarify the impact of M&A activity of listed companies on M&A performance and how they are affected,the changes in enterprise performance of listed companies before and after M&A activity are clarified,and practical measures are proposed on the basis of actual business activities.The performance of the company will further promote the stable and steady development of the financial market in the entire environment.It is of significant and has reference value in theory and practice.This paper deals with Chinese capital market,based on Chinese M&A market and existing research results at home and abroad,417 listed companies are selected to have acquired M&As from 2011 to 2013 as samples.According to the the merger or acquisition—whether the acquired company is related to the industry or not,company's industry is divided into three types: horizontal mergers,vertical mergers,and conglomerate merger.In addition,all horizontal mergers are divided into cash payment,stock payment,and hybrid payment according to the payment method.Using a combination of factor analysis and trend analysis,this paper empirically analyzes the five-year M&A performance of the sample companies before and after the M&A from the perspective of single indicators and comprehensive performance.The research finds that M&A performance is different with different models: horizontal M&A is beneficial to enhance corporate M&A performance;vertical M&A is not conducive to improving M&A performance;conglomerate merger is beneficial to M&A performance.By comparing,horizontal M&A trends are found to be optimal,followed by the conglomerate merger declining first then rising again,and the vertical M&A is the worst.In the horizontal M&A,the cash payment and the mixed payment are beneficial to the improvement of the company's long-term performance;and the stock payment is more conducive to the improvement of the short-term performance of the company.