Research On Performance Of Manufacturing M&A In China

Merger and acquisition (M&A) is ever-present in the market economy. The property of company has become a kind of merchandise that can be traded in the open market since the occur of capital market, the theory about M&A also occur and development unceasing. In the research of M&A, many people attention the problem of how to evaluate the effect of a M&A. The research of M&A effect has important significance no matter in theory, but also in practice.This article will evaluate the affect of a M&A by compare the "probability of breach of faith", that is, if the "probability of breach of faith" of a completed M&A company is bigger than before, we say that, the M&A is minus-effect; if the "probability of breach of faith" of a completed M&A company is smaller than before, on the other hand , the M&A is positive-effect. The concept of "probability of breach of faith" is raised by Professor Morton (1974), which to identify the stability of firm management; it uses to value the credit of a company and others. As a matter of fact, it is the use of finance option in real asset.In the basics of examining all the M&A event which belong to manufacturing and occur from 1st January 2006 to 1st November 2006, we found that, in the view of whole industry, the manufacturing is full of M&A value. But, from the view of single company, the effect of M&A are lack of efficiency, and reflect the phenomena of many company lack of experience in M & A in our country.At last, we introduce some typical problem in the M&A activity, and give some suggest from the point of view of macroscopically and microcosmic.