Study On The M&A Performance Of Automobile Industry Of China Based On Industrial Evolution

M & A is an important way for business expansion. In different stages of industrial life cycle, company should choose different mergers and acquisitions in order to achieve the best results.This article analyzes China's automotive industry from the perspective of the evolution. According to Industrial Development and M&A relationship:the growth stage of the enterprise is more suitable for horizontal merger, the maturity of the enterprise is more suitable for vertical merger.This article analyses global and Chinese auto industry based on industry evolution. Draw a conclusion that the evolution of Chinese automobile industry is at the early stages a mature industry. According to Industrial Development and M & A relationship: the growth stage of the enterprise is more suitable for horizontal merger, in the maturity of the enterprise is more suitable for vertical merger, pursuant to which, the paper selected listed companies in 2002-2009, the automotive industry M & A events occurred as the sample, the sample divided into two types of horizontal mergers and vertical mergers, the use of accounting research method selected four financial indicators before and after the year of acquisition to evaluate financial performance and concluded:the sample of mergers and acquisitions before and after a year of performance improvement is not significant; Horizontal Merger significantly improved the performance of the year, year after M & A performance is not improved; vertical mergers that year, year after M & A performance improvement is not significant.