The Research On The Influencing Factors Of Merger Performance

Different ownership structures lead to different behavior trajectories. Regardless how the concentration degree of ownership structure is, under market economy system, competition is the basic motivation for economic behaviors; efficiency is the ultimate goal of economic behaviors. The fundamental way of enhancing efficiency is to find internal and external factors which affect economic behaviors, go through economic levers to achieve Pareto improvements and finally achieves the optimal goal. In China the market for corporate control is not totally effective. The approach of summarizing large sample variation principle to find the relationship between acquisition and long-term performance is less successful.This paper believes that we shall start from the perspective of conducting research on corporate behaviors at current stage, summarize the general rule of M&A's influences on corporate performance and let it more suitable for the development needs of socialist market economy. TBEA Co., Ltd. makes M&A on Shenyang Transformer Co., Ltd. which is the rare success story during state-owned enterprises'restructurings. And before that TBEA Co., Ltd. has achieved success in many similar incidences. That is to say TBEA Co., Ltd. has mastered the whole idea of taking over control of state-owned enterprises at this stage to. While the integration with Shenyang Transformer Co., Ltd. is the most typical behavior in the process of expanding and restructuring structure. This article selects this M&A as an example with the purpose of summing up the general rules of state-owned enterprises'restructuring, especially large-scale equipment manufacturing industry in The other forms of stock rights replace state-owned stock gradually through studies on M & A behaviors of enterprises. That process will provide successful experience for private capital entering into state-owned industries.In this paper, it applies standardized case study approach, bases on the structure of industrial organization theory - conduct - performance logical reasoning, builds analytical framework, through searching for the factors which affecting the acquisition performance after transfer of control to investigate its influence on long-term development of enterprise and summarize the general law of M & A and corporate performance in the main conclusions as follows: (1) Competition determines the efficiency; control rights have constant changes in market competition. The ownership structure changes with the transfer of control rights. Changes in the structure of ownership influence the changes in corporate governance, capital structure and government intervention these three behaviors which ultimately affecting the performance of mergers and acquisitions. (2) The changes in corporate governance performance reflect in the changes of corporate control right structure. Thus it changes the behavior of corporate governance, including the formulation of management incentives, control rights distribution and business internal system. These behaviors change the interest relationship of the controlling shareholders, minority shareholders and management level and then change corporate performance. (3) The changes on trade ability behavior reflect in changes in capital structure. The financing mergers and acquisitions of enterprises primarily have debt financing, equity financing and hybrid financing these three types. When an enterprise chooses one or more financing approaches to complete acquisitions, the cost of capital, cash flow, financial risk and solvency have changed for both parties, thus affecting the company's long-term performance. (4) The primary role of government intervention is in the external environment of enterprises. But because of the special status of government, the government's participation in M & A can make changes in the structure of enterprises. The changes in industry structure affect the changes of public interest and government interests, the corporate performance will also be changed.