The Empirical Analysis Of M&A Performance And Influence Factors On Listed Chinese Real Estate Company

M&A performance and its influence factors are always hot issues in the research of M&A economics field.In this paper, listed real estate companies which implemented merging during 2005 to 2007 are taken as research objects.Accounting index method is used to evaluate M&A performance.In order to make evaluation more reasonably reflect performance, macro environment development trend factor is eliminated. Based on the analysis of characteristics of the real estate industry, followed by detailed discussion of real estate merger characteristics, an empirical study has been carried out to analyze the influence factors of M&A performance, according to M & A process.Relative size of the Target Company, debt ratio of Target Company, M&A premium degree, payment method, affiliate transaction, benchmark interest rates, free cash flow and management integration efforts are mainly considered. In order to investigate the significant factors of each stage and relative importance to the M&A performance, multiple linear regression with backward strategy is chosen to processing the data. The results show that the affiliate transaction, free cash flow, cash payment, relative size and debt ratio of the Target Company and premium level are important to performance in a descending order. In addition, relative size and debt ratio of the target company, M&A premium rate and free cash flow are negatively correlated to acquisition performance; the use of cash payments causes a negative impact on acquisition performance, while affiliate transaction based on the motive of optimal allocation of resources can improve the effective performance of the real estate industry mergers and acquisitions.