Research On The Impact Of Overseas Mergers And Acquisitions Of CITIC Bank On Its Performance

In recent years,changes in the financial market have led to intensified competition among commercial banks.Overseas mergers and acquisitions are one of the important means for commercial banks to improve their market dominant position and enhance their international competitiveness.In recent years,the development speed and capital strength of China's joint-stock commercial banks are continuously improving,and the demand for intermational operation is increasing day by day.They are in an important strategic position in the market-oriented reform of China's banking industry and will achieve more rapid and leapfrog development in the future.Therefore,the issue of overseas M&A of-joint-stock commercial banks in the process of internationalization should receive in-depth attention.This article focuses on the case of CITIC Bank's acquisition of CITIC International Financial Holdings Co.,Ltd.It mainly expounds the theoretical background and realistic background of M&A,the development process and operation status of CITIC Bank and CITIC International Financial Holdings Co.,Ltd.,and then describes and analyzes the motivation and process of M&A.It also uses event research method and factor analysis method to conduct in-depth research on M&A's performance,and tests whether the overseas M&A has brought about improvement in performance and internationalization degree,thus contributing to providing theoretical basis and effective guidance for the future practice of joint-stock banks overseas M&A.After analysis,this paper draws a conclusion:in the short term.the positix'e impact of overseas M&A on the performance of CITIC Bank is quite significant.Through the event research method,it can be seen that the average excess return rate of CITIC Bank before and after the announcement of M&A is 0.00061379.and the CAR is also positive.indicating that the capital market has a positive attitude towards M&A this time.In the long run,among the three public factors extracted by factor analysis.the scores of profit and safety factor is on the rise,but the score of liquidity factor and growth factor are on the decline.On the whole,although the overall score is on the rise,M&A has no obvious positive effect on perforlance in the long run.There are two contributions in this paper:first,the innovation of the research object,with joint-stock collercial banks as the main body.This paper takes CITIC Bank's overseas M&A as an example to analyze the performance changes and other related issues of joint-stock commercial banks' overseas M&A.The second is the innovation of the research conclusion.The summary of the successful experience of CITIC Bank in M&A can help joint-stock commercial banks understand various matters needing attention when they are in M&A overseas.The research conclusion has practical reference value for joint-stock commercial banks to formulate scientific and reasonable specific overseas Mergers and acquisitions plan according to their own development needs.