Abstract

Mergers and acquisitions is to improve the comprehensive competitiveness of enterprises in our country, adjusting the industrial structure and transformating the model of economic growth. How to evaluate the market value of the strategy has become a common topic faced by the government management departments and enterprises. This book is based on the Shanghai and Shenzhen stock data, and uses case studies to value the effects of mergers and acquisitions. The study found that mergers and acquisitions involving sellers which have a poor performance have brought a small amount of positive value effect. Both the sellers and the buyers which have a good performance will have a substantial profit margin decline after the mergers and acquisitions and the value effect is significantly negative. So overall, M＆A's value effects on Chinese stock market from 1998 to 2011 are negative, mergers and acquisitions damaged the interests of minority shareholders, in particular, many interest groups used their mastery of administrative power, resources and information superiority, and by manufacturing system vulnerabilities to exploit the masses of investors. The stock market presents a negative sum game. The facts show that the Chinese stock market didn't create value for shareholders, mergers and acquisitions, on the contrary, have destroyed the value to some extent.

The book includes different subjects, different ways of mergers and acquisitions and value effects on M＆A in different industries. The conclusions have certain reference value for studying M＆A in our country and making decisions.