Study on the Measurement of M & A Performance of Chinese Listed Companies

M & A between companies go up quickly in the past 20 years in China, M & A performance is focused gradually, and the study on the measurement of M & A performance becomes more and more important. This paper researches the M & A happened in 2004 of 92 Chinese A-share listed companies, uses the improved assets yield of net cash flow to measure performance before and after the acquisition, and also uses multivariate regression analysis to test the factors which influence M & A Performance. The results show that: M & A Performance of listed companies has the tendency which rises first and falls later. Total assets growth, the proportion of state-owned shares, the main business income growth, and premium transactions are the primary factors which influence M & A Performance. These factors can explain the changes of operating performance of acquired company, and the other factors supposed at the beginning should be ignored.