Research in the Mergers and Acquisitions Performance Appraisal and Its Effects of China’s Manufacturing Industry Listed Companies
|School||Dalian Maritime University|
|Keywords||Manufacturing industry M&A performance Evaluation Influencing factors|
The manufacturing industry, the backbone of the industrial economy in China, played an important role in the economic development. In the wave of merger and acquisition, the manufacturing industry is attracting more and more attention. The improvement of M&A performance in the manufacturing industry is conductive to raising the overall social welfare. However, several problems need further study such as whether the listed company performance of Chinese manufacturing industry could get improved, whether to create more values for shareholders and other stakeholders, how to measure the listed company performance of Chinese manufacturing industry and which factors are the main factors influencing their performance if the M&A performance of the listed companies in the manufacturing industry could get improved.Based on the existing research results at home and abroad, this paper aimed at assessing the M&A performance of the listed companies in Chinese manufacturing industry from its current situation and in-depth analyzing its main influencing factors. The main contents are in the following.Several popular methods for assessing the M&A performance was briefly introduced. Then establish a new model for evaluating the M&A performance and collect the relevant data on the listed manufacturing companies to conduct empirical research. In this paper, it adopted the factor analysis method combined with the method of comparing its operational performance and established a comprehensive evaluation model. Then it selected 96 listed companies in Chinese manufacturing industry when the M&A events occurred in 2006 as the research sample and chose 11 financial indicators. Finally, get the annual performance score of various companies and compare their performance changes under different circumstances. The results showed that M&A only could make the small part listed companies performance of the manufacturing industry get improved. The improved performance of ST (special treatment) companies after merger and acquisition is more evident than the non-ST companies’. The improved performance of the monopolistic industries with limited market demand elasticity after merger and acquisition is significant. The improved performance of those industries with strong competition after merger and acquisition did not show as people expected. Analyze the main factors that influence the M&A performance, establish the model for analyzing the influencing force of the M&A performance and study the impact of various factors on the corporate M&A performance. There are many factors that influence the corporate M&A performance. Different factors have distinct impact on the corporate M&A performance. This paper used the financial data of Chinese listed companies in manufacturing industry and the data covered from 2005 to 2009. It proposed 7 factors which may have impact on the M&A performance and deal with the economic statistics to conduct the hypothesis test. The empirical evidence showed that the asset scale of the party who is merged have no significance with the M&A performance. Those factors, such as the M&A scale, the percentage of state-owned ownership, the type of the M&A, the percentage of the merger-owned ownership and the relativity of the M&A trade et al, have significant influence on the M&A performance. The payment way of the M&A trade have a great impact on the M&A performance.The above study, on the one hand, enriched its theoretical and empirical research on the M&A, on the other hand, it provided references for decision-making and had theoretical and practical significance.