An Empirical Study of Market Reaction of Mergers and Acquisitions of Real Estate Listed Companies in China under Complete Circulation

By using Event-Study Analysis, the paper studied empirically about the market reaction of the M&A of real estate listed companies from 2007 to 2008 in China. The results demonstrated that it has a positive income effect of M&A in the short term, nevertheless, such effect in non-related companies is overwhelming stronger than related ones. In study of the factors affected the M&A through Regression, we can see that there is a positive effect of asset debt ratio, return on net assets and total asset turnover; by contrast, there is a negative effect of total leverage, the proportion of property rights and Tobin Q. The greatest positive and negative indicators caused by M&A were asset debt ratio and total asset turnover respectively.