Study On M&A Of Retail Enterprises In China

After China entry into WTO and increasingly merging into the world economy, the worldwide adjustment of economic structure and industrial restructuring will inevitably have a huge impact on our current economic mode and industrial structure. As we know, in a mature market economy, the quantity of retail enterprises is certainly not so many. One retail enterprise usually owns many shops and truly relies on the economy of scale to integrate its resources, enhance its efficiency and cut its costs. While the situation in China is quite different, the retail market owns a group of enterprises of quite a large quantity. However, large-scale and competitive enterprises are still lacking in the market.Looking back into the history of modern economy, one prominent phenomenon is that the development and expansion of an enterprise nearly all adopt the mode of M&A. Although industry M&A in China are still booming and flourishing, our enterprises, due to the institutional, historical and their own constraints, are faced with many difficulties in their M&A activities, which lead to unsatisfactory results. The author takes the M&A activities of Chinese retail enterprises as the research objects, from each aspect of M&A activities, analyses the existing problems in our retail enterprises' M&A activities in an effort to resolve some problems. In addition, the author compares the performance of some listed retail corporations before and after their M&A with the purpose to provide some proper suggestions as to how we can help our retail enterprises to have an even healthier, quicker, more stable development.Firstly, in chapter two the author makes an integrated and all-around analysis of the enterprises' M&A on the basis of the modern industrial organization theory and the enterprise theory. Based on expounding M&A conception and its different types, the author discusses theories of economic motives for enterprises' M&A and the performance of enterprises' M&A at home and abroad, and analyses characteristics and applies each.Secondly, in chapter three the author depicts the causes for merger of retail enterprises in China and analysis the motives of merger from two aspects, one is exterior factor, and the other is external factor. It explained domestic retail enterprises merger have positive sense on the development of domestic retail enterprises.Thirdly, the performance of M&A of listed Chinese retail companies are analyzed by establishing a score function with the principal component method from Statistical...