The Performance of Cross-Border M&As by Chinese Listed Firms:An Empirical Analysis Based on Factor Analysis

Owing to the financial crisis, chinese cooperation encounters an opportunity of cross-border MA. Based on factor analysis,this paper makes principal component analysis on the various financial indicators of listed companies, and then builds up integrated-point-function for each year. On the foundation of the difference analysis, a comparative analysis of the operation performance before and after mergers and acquisitions of 10 Chinese listed companies is made. The result shows that a large number of acquiring companies do not create value as expected but experience a rapid decline instead. Conclusively, it not only suggests the companies should be cautious of cross-border MA, but makes relevant recommendations to the companies and the government.