Empirical Analysis On Performance Of M&A Of Retail Enterprises In China

The five practices of enterprise's M&A in western country have proved that M&A is an effective means of strategic adjustment. China's enterprises are increasingly taking part in M&A activities with the process of China's further economic reform. And the government has reduced its administrative intervention and issued a series policy of M&A. Many local enterprises belonging to steel, mining, banking and so on, have also conducted a series of cross-border M&A, which play an important role in the world M&A stage.Since 2002, China's real estate market has been increasingly heating up, and experienced in a stage of rapid development and large-scale expansion. By the increasing influence on stringent regulations in land and monetary policy, real estate companies have chosen M & A as a strategic means to expand and restructure.Many foreign and domestic scholars do a lot of research on the motivation of M&A and the performance change of M&A. However, it never can come out to consistent conclusions with the constraint of many complicated factors. This article takes the relative theories of M&A as guidance, and utilizes data in real estate statistical yearbook as a support to analysis the characteristics of the real estate industry and the current situations of M&A. It summed up the motivations of real estate companies with specific examples. At the part of empirical analysis, this article uses factor analysis to establish a comprehensive scoring function model and testifies the performance changes of M&A with samples from the year of 2008 of listed real estate M&A activities in SH, SZ stock exchange. With the results of empirical analysis, it finally concludes the risk factors for the performance of real estate M & A and provide corresponding suggestions to reduce them. At the end of this article, it does an overview of the future trends of M&A in real estate industry.