A Study On The Performance Of Diversification M & A Of Chinese Listed Company

Diversification M&A is the valid way for the company to do diversification management.It is the arguable topic about whether diversification M&A could bring profits to the corporation.Through kinds of research methods, Foreign scholars make many empirical analysis of the performance brought by diversification M&A,but at present there is no uniform conclusions. With the increased openness of the Chinese market, dsiversification M&A Gradually become the main form of corporate mergers and acquisitions, so whether diversification M&A can benefit enterprise becomes the focus of attention of Chinese scholars.Baced on summarizing the study fruit at home and abroad, 81 listed companies was taked as the samples that have experienced diversification M&A between 2005 and 2006, the acquisition is takes as the research object,and selects 11 financial indexes which weigh the performance of M&A, then builds a comprehensive scoring model to evaluate enterprise performance by utilizing factor analysis and proceeds empirical analysis of the long-term diversification M&A performance. And baced on those,departing from the company's growth and corporate business model, the different enterprise performance is analyed during the time of diversification M&A who are different growing companies and have different growth pattern.The empirical results show that for Chinese Listed Company M&A effect is brought by diversification M&A, some companies have remarkably improved the performance afher M&A. Further look,The performance of Diversification M&A which occurred in different times are different;The different growing companies have different diversification M&A performance: Non-growth companies have the best performce after Diversification M&A,then of growth and low-growing companies followed,the worst is high-growth companies. Different business model of diversity performance of various mergers and acquisitions,under different growth model,the companies have different diversification M&A,and the degree of diversification M&A also affects performance: the diversification M&A performance taken by professional management company is much better than the diversified operating company; and the higher degree of diversification,the worse performance of the company diversified M&A.Based on the above findings, some suggestions is provided to enhance the diversification M&A performance for the listed companies in our country.