A Research On The Performance Of Overseas M&A Of Chinese Commercial Banks

In 2006,with China's accession to the World Trade Organization(WTO)end of the period,China's banking industry to foreign banks to fully open domestic citizens RMB business.Foreign banks quickly through the new branches and mergers and acquisitions of China's domestic financial institutions in two ways to seize our financial market.In addition,the domestic small and medium commercial banks have emerged,making China's financial market competition is more intense.Faced with an increasingly competitive environment,Chinese banks usher in a new wave of mergers and acquisitions.2006-2016,the Chinese-funded commercial banks led the acquisition of 24 transactions.Therefore,it is an urgent problem to solve the problem of how to improve the performance of Chinese banks through M&A activities,and it is of practical significance to analyze whether the M&A behavior of commercial banks in China has improved the performance of M&A.Industrial and Commercial Bank of China has been actively responding to the party's "going out" call,leading overseas mergers and acquisitions reached 11 cases.Therefore,this paper takes the overseas M&A event dominated by Industrial and Commercial Bank of China as the research sample,analyzes the shareholder's wealth effect of the Bank in the event window by the event research method,and selects from the four aspects of profitability,operation ability,solvency and development ability Financial indicators measure performance changes before and after M&A,with a view to assessing overseas M&A performance from both short and long term perspectives.At the same time,by analyzing the experience of ICBC in developing international business strategy,it will provide feasible suggestions for overseas M&A transactions of Chinese commercial banks.This paper consists of five parts.The first part is the introduction,which mainly introduces the research background and significance,the research content and the method,and the possible innovation and the insufficiency.The second part is the theoretical basis and literature review.It mainly defines the relevant concepts and expounds the relevant theories,lays the theoretical foundation for the further research of this paper,and then systematically combs the theoretical and empirical research results of banking mergers and acquisitions.The third part summarizes the characteristics of overseas mergers and acquisitions of China's commercial banks by reviewing the development of mergers and acquisitions of global and Chinese commercial banks,and analyzes the motivation of Chinese-funded commercial overseas mergers and acquisitions from both internal and external aspects.The fourth part is the empirical test and the results analysis,from the short and long two aspects of the industrial and commercial bank overseas M&A performance empirical study.The fifth part is the conclusion and suggestion,summarizes the research results obtained in this paper,and then put forward the relevant suggestions.This paper chooses five overseas M&A events led by Industrial and Commercial Bank of China from 2006 to 2016,and uses the event research method to study the short ?term performance of overseas M&A transactions.This paper argues that M&A transactions can not bring wealth effects to shareholders of mergers and acquisitions in the study window.In addition,this paper chooses the classic case of Industrial and Commercial Bank of China to acquire Standard Bank of South Africa,uses the accounting index method to study the long-term performance of overseas M&A transactions,and makes descriptive statistics on the financial indicators of ICBC overseas divisions.The results show that overseas M&A transactions to enhance the profitability and operational capacity of ICBC,solvency has not been greatly affected,the development capacity has not been apparent.