An Empirical Study on the Performance of M&A of Listed Central Government-owned Enterprises
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| Title | An Empirical Study on the Performance of M&A of Listed Central Government-owned Enterprises
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| Author | Tong Shenghui, Lin Guangbin and Wang Jun |
| Organization | Central University of Finance and Economics |
| Email | lingb@cufe.edu.cn;tongshenghui@yahoo.com;economicreserve@163.com |
| Key Words | Central Government-owned Enterprises； Private Firms； M&A of Listed Firms；Principal Components Analysis；Holistic operation Performance |
| Abstract | Based on the data between 2007-2011 regarding the M&A of listed Central Government-owned Enterprises, this paper uses empirical analysis to examine the relation between the M&A and operation performance of listed Central Government-owned Enterprises; in contrast, the relation between M&A and the operation performance of listed private firms is examined as well. Principal Components Analysis (PCA) is used to obtain the holistic measure on operation performance, and then we use the multiple regression analysis to examine the relation between the M&A and the holistic operation performance of listed firms. This study finds that to listed Central Government-owned Enterprises, their operation performances have been consistently worse off for five years since the M&A. In contrast, although M&A have a positive impact on the operation performance of listed private firms in first year, their operation performance deteriorates during the following four years. The findings indicate that, in recent years, the M&A of listed Central Government-owned Enterprises have not achieved the goal of improving their holistic operation performance through M&A activities. |
| Serial Number | WP649 |
| Time | 2014-08-08 |
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