Dissertation > Excellent graduate degree dissertation topics show

An Empirical Study on Performance of M&A of Listed Companies in China

Author: XinGuoKun
Tutor: PanQingMu
School: Southwestern University of Finance and Economics
Course: Finance
Keywords: Listed companies M \u0026 A Performance Economic value added index system method Empirical research
CLC: F276.6;F224
Type: Master's thesis
Year: 2010
Downloads: 339
Quote: 0
Read: Download Dissertation

Abstract

M \u0026 A is an important means of the company's capital expansion, rapid growth of the company is also one of the ways. Through mergers and acquisitions to be able to achieve the optimal allocation of company resources to meet the the company capital's low-cost, high-efficiency expansion. However, due to the acquisitions of their complexity and diversity, a lot of mergers and acquisitions failed to achieve the target for mergers and acquisitions. In China, with the securities and capital markets increasingly sophisticated, the circulation time of arrival of the stock market and how to achieve the performance of the company's rapid growth through mergers and acquisitions to enhance the company's competitive advantage in the industry, has also become the concern of the company's management One of the themes. But the acquisition is real shareholders increase revenue, create economic benefits for the company, to bring value to society? Practice field, and theoretical circles vary. Therefore, the company's M \u0026 A performance study in this particular context of economic transition period, will undoubtedly have important theoretical and practical significance. In developed markets, all scholars of M \u0026 A value effect through different methods and a large number of academic studies, but the whole, the M \u0026 A value effect exists great uncertainty. At present, China is in a special period of economic transition, the healthy development of the M \u0026 A market is particularly important, and therefore the need to strengthen the research and analysis of the company's merger and acquisition activity, and the key is to study whether the M \u0026 A activity to create value. Ideas and methods to solve this problem, this article from the value of the company point of view to start, the use of economic value added (EVA), around the M \u0026 A activity is conducive to empirical research and analysis to enhance the enterprise value of the M \u0026 A side, designed for our company mergers and acquisitions decision-making to provide a viable reference recommendations. Indicators of economic growth as the value of the research firm added value significantly different from the other methods of advantages: a more comprehensive reflection of the company's operating results, and amended the company net profit for the short-sighted, and has linked the interests of shareholders and corporate decision-making effectively advantages. This paper studies mergers and acquisitions activity on the performance of listed companies, as well as what factors affect M \u0026 A performance. Literature review of the theoretical and empirical research content is divided into five chapters: Chapter Introduction, described the research background and practical significance, domestic and international mergers and acquisitions, and brief comments. In China, with the Interim Measures on mergers and acquisitions in 1989 \are increasing. There is a need to study new problems emerging in the process of China's listed companies in M ??\u0026 A activity, new situations, and to make a reasonable explanation. Connotation with the theory of the second chapter of the company M \u0026 M \u0026 meaning defined and elaborated on various domestic and international M \u0026 motivation, combined with the specific situation of China's M \u0026 A events and new features, summed up this our M \u0026 A special motivation. Mainly include: excessive government intervention, the integration of multi-stakeholder resources to cope with the international competition such as mergers and acquisitions motivation. Chapter M \u0026 A performance evaluation method comparison and selection system introduced various methods of previous research company M \u0026 A performance, put forward the basic ideas of the index system and its advantages in the economic value added (EVA). Mainly on the basic concepts of the economic value added, the calculation process and the improved method will be explained. Chapters 4 and 5 of EVA index system based listed company M \u0026 A Performance empirical research to verify the relevant conclusions and recommendations measures. Is the core content of this article: analysis of empirical research from multiple angles. Selected sample structure model to the evaluation indicators compare different factors impact on the performance of the acquired company's mergers and acquisitions around the economic value added (EVA). 2006 in Shanghai and Shenzhen listed company M \u0026 A activity in the sample, calculated for the first two years of the acquirer company mergers and acquisitions from 2004 to 2008, two years after the mergers and acquisitions that year and acquisitions the EVA value, EVAPC value, EVA * value by Western scholars Healy, Palepu, and Ruback regression equation model used in the study of the performance of M \u0026 A events empirical research on M \u0026 A performance of each company. Main conclusions: (1) M \u0026 A events have a negative effect of the performance of the acquired company in China, M \u0026 A target company acquired its operating performance general than the poor, often contingent liabilities, the short-term will inevitably caused by the performance of the acquired company negative impact. The ② acquisition have a certain impact on the company's performance and to obtain a positive economic value added effect of the acquisition of assets acquired companies. Greater flexibility with respect to asset acquisitions, equity acquisition. Once the target company's poor operating results, the acquisition of the company can be more easily of the shares of the target company again transferred, this favorable operating results of the acquired companies. In addition, some acquired companies became the largest shareholder of the target company after the acquisition of these shares, their operating decisions will not only take into account the development of the target company, but also take into account their own interests. Therefore, the acquisition of equity acquired companies can get a better performance than the acquisition of assets acquired companies. Debt restructuring and more affected by the impact of government action, when the target company is already heavily indebted, low performance and business unsustainable, even to the point of bankruptcy, in order to solve the problem of employment needs and social impact, the government departments may come forward to these enterprises transferred to other enterprises, after the takeover of the acquired company must affect the company's operating results in the short term. ③ equity proportion of the largest natural person shares in the acquisition of companies, the proportion for initiating legal person shares of the acquisition of the company by the post-merger, economic value added are obtained positive impact effect, and control human equity species for the state-owned shares and state-owned legal person shares of the company via mergers and acquisitions its economic added value of a negative effect. The best company obtain economic value-added effect Holdings types natural person holding company. I believe that the main reason for the above results is improve the corporate governance structure of the joint-stock enterprise, higher efficiency, on the other hand relative to initiate legal person shares of enterprises, corporate governance of state-owned enterprises is relatively low efficiency. Judging from the overall performance of the operating results of the joint-stock enterprise relatively best, followed by to initiate corporate enterprises, the worst performance of state-owned enterprises. Combination of mergers and acquisitions create value theory and China's actual situation, this paper, company mergers and acquisitions in China to improve M \u0026 A performance measures and suggestions: First, the motive should be consistent with the strategic planning of the company's main business and the long-term development, and focus on mergers and acquisitions and effectively integrate; first the form of a corporate reorganization of assets should be diversified, select mergers and acquisitions for the company's own; gradually standardize government intervention in the merger behavior; Fourth, establish and improve the widely financing channels unblocked mode, increased supervision, to create a M \u0026 external environment. The inadequacies of this article: (1) any kind of method has its advantages and its limitations, EVA index system is no exception. The EVA method of its theoretical advantages, but is not a perfect indicator, this article just from a new point of view to assess the effect of the value of mergers and acquisitions, hope for new discoveries. (2) acquisition performance window period from the pre-merger two years to mergers and acquisitions in the window period, the operating conditions of the sample will be the impact of the economic situation as a whole. Failed to examine the sample's M \u0026 A performance in a complete economic cycle, the listed company M \u0026 A performance obtained in this study may also be subject to the adverse impact of the economic environment in the window period and lower than the true level. Performance changes (3) mergers and acquisitions, in addition to the influence of the M \u0026 A activity, but also by some other factors, persistence and other factors such as macroeconomic, industry development, pre-merger firm-specific performance. This article is only a new approach to overcome these negative effects, but not perfect. (4) M \u0026 A motive analysis of influencing factors that affect the mechanism of corporate performance, especially on the merger motivation is only a preliminary study. (5) The number of cases screened stocks is still small, will affect the results convincing.

Related Dissertations

CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
© 2012 www.DissertationTopic.Net Mobile