Comparison Of Financial Industry Mergers And Acquisitions(M&A) Between China And The United States

Mergers and acquisitions are essentially a form of corporate restructuring,and are also an inevitable requirement of social production and an important part of deepening corporate reform.With the deepening of economic globalization and financial integra-tion,the scale of mergers and acquisitions in the financial industry have been further promoted.Therefore,this paper takes financial enterprise M&A as the research object for empirical research and analysis,which has certain reference value for the develop-ment of global financial industry M&A.This paper compares and analyzes the mergers and acquisitions in the US financial industry,and expounds the current situation of China's financial industry M&A devel-opment from a holistic perspective.In this paper,30 representative M&A cases were selected from the financial industry in China and the United States from 2006 to 2015.The event research method was used to compare and analyze the M&A performance of the financial industry in China and the United States.By selecting three different event windows[-10,10],[-20,20]and[-30,30],the corresponding results are obtained from three different event windows.From the results of the study,there are common-alities between different event windows,but there are also differences.Through the comparative analysis of the conclusions from three different event windows,the av-erage abnormal return rate(AAR)and cumulative abnormal return rate(CAR)of the mergers between China and the United States are uncertain,that is,it is impossible to determine whether it is positive.Because different M&A events have different M&A processes,and stock prices are also highly susceptible to emergencies.However,the absolute value of AAR and CAR in China's mergers and acquisitions is usually higher than that in the US,which means that if the abnormal returns are positive,then Chinese listed companies will get higher abnormal returns through mergers and acquisitions,but if the abnormal returns are negative,then China Listed companies will also suffer greater losses through mergers and acquisitions.In addition,AAR and CAR in China's mergers and acquisitions also have greater volatility than the United States,and the level of significance of China's acquired CAR is relatively higher.We also found that when the acquisition is close to the completion date of the acquisition,the level of AAR and CAR in China and the United States has significantly increased,which means that as the acquisition completion date approaches,the stock price of the acquiring company is more susceptible to mergers and acquisitions.Finally,this paper puts forward some practical suggestions for the development of M&A in domestic financial industry:China's financial institutions should clarify the M&A strategy according to their own development needs;(2)Focus on post-merger integration;Promote a certain degree of mixed operation of financial institutions in China;For M&A of financial institutions in China,priority should be given to inter-nal M&A strategies;Improve relevant laws and regulations,improve financial market supervision,and reduce government intervention.