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Does Market-oriented Merger and Acquisition Create More Shareholder’s Value?
Author: WuJing
Tutor: ZengQingSheng
School: Shanghai Jiaotong University
Course: Accounting
Keywords: M \u0026 A market Shareholder Value Event Study Results of Operations
CLC: F832.51
Type: Master's thesis
Year: 2008
Downloads: 67
Quote: 0
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Abstract
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Mergers and acquisitions, from a macro point of view, is for industrial restructuring , the rational allocation of resources means ; From the microscopic point of view , is a market economy under the conditions of the enterprise survival and development inevitable way. At present, China fully open with the economic trends and the globalization era , are emerging a lot of M \u0026 A activity undoubtedly rapidly expanding size of the enterprise , group co-founder 1264 million private placement to acquire Beijing Union Silver Pass Technology Co., Ltd. 100% equity interest in a matter , which is the first time in the Chinese capital of a listed company on the market to non- associated shareholders directed issue of shares to non-associated shareholders of the acquisition of the assets of M \u0026 A cases , such as mergers and acquisitions market-oriented mode is really increase enterprise efficiency and value , which can create more income for shareholders do ? I use a large shareholder of Qingdao Haier placement merger cases for comparison, were analyzed . Empirical analysis found that, from M \u0026 A events of the short window market response , market-oriented mergers and acquisitions resulting non-cumulative shareholder return of more normal placement to major shareholder merger ; window from a long term, market-oriented M \u0026 A shareholder returns compared to large shareholders M \u0026 A placement rendered more stable growth trend in the bear market of 2008 , the market mergers and acquisitions firm 's market performance was significantly better in the private placement to major shareholder acquired company . In addition, the comparison of two listed companies in mergers and acquisitions before and after changes in operating results , select the ROE , cash flows from operating activities per share , operating income growth rate three indicators combined analysis, found in one to two years after the merger , market-oriented M \u0026 M Company's larger shareholders of the private placement of the profitability of the company has to develop a stronger , faster growth level to improve the future financial risks faced by smaller , and other areas . In conclusion, the results show that market-oriented mergers and acquisitions can create more value for shareholders . M \u0026 A market-oriented model is based on China's capital market innovation in one fell swoop , and success in one fell swoop , so I summed up the advantages of this acquisition mode and explain its capital markets and mergers and acquisitions inspire other businesses .
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CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Financial market
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