The Performance Analysis On M&A Of Chinese Auto Listed Firms

Merger and Acquisition(M&A) become the thruster of optimization of organization and adjustment of economy structure. And it has the thruster of essential regroupment of listed corporation. But the performance of M&A is drastically discussed.In order to study the performance of M&A of listed company, the influence factors, the degree and direction, a research has been carried out. Experimental and theoretical methods are adopted to analyze the problem under research. Chinese auto listed firms that M&A occur from 1996 to 2004 as subject are selected. Accounting indexes are used to test the achievements of the listed companies in Chinese auto industry that have been acquired. To avoid the deficiencies of a single index, the paper chooses quite a few accounting indexes and by means of factor analysis it constructs the model of comprehensive scores to illustrate the achievements of these listed companies. Then parameter and non-parameter testing methods are used to test the differences of comprehensive scores before and after the acquisitions. The paper goes on to research into whether there are any significant changes concerning the achievements in the two periods. In order to study the impacts that the acquisitions have had on the listed companies, the paper has extended the tested periods to the year before the acquisitions and the second year after them.After the analysis, it found that the performance of M&A descended after M&A in these listed auto companies. So the paper puts forward several policy suggestions in approving business acquisition performance. The writer hopes his analysis will be of some help to the policy-makers.