Journal of Northeastern University ›› 2013, Vol. 34 ›› Issue (6): 905-908.DOI: -

• Management Science • Previous Articles     Next Articles

Characteristics of the Merger Target Firm in Post Nontradable Share Reform Era—An Empirical Study on the Listed Companies in Chinese Equity Market

GAO Zhenming1, ZHUANG Xintian1, CAO Xiaoling2   

  1. 1. School of Business Administration, Northeastern University, Shenyang 110819, China; 2. College of Management, Dong Hwa University, Hualian 97401, China.
  • Received:2012-09-14 Revised:2012-09-14 Online:2013-06-15 Published:2013-12-31
  • Contact: GAO Zhenming
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Abstract: Characteristics of the merger target firm were investigated based on Chinese capital market and institutions in post nontradable share reform era with the listed companies of A share market taken over in 2009~2011, using statistical analysis such as ANOVA and Logit model. It shows that the targets companies usually have inefficient managements, large firm size, low equity liquidities, lower growth rate and insufficient financial resources. The trading volume and turnover rate of the targets can reflect the merger in advance. The operating capacity, debt paying ability and capital to expand capacity well explain the merger target firm. The Logit model can well help to identify the merger targets.

Key words: merger, target firm, characteristics, variance analysis, Logit model

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