The Researchment On The Merging Practice And Performance Compariment In Sanhua Corp

At the beginning of this article, the author proposes a question:why do so many corporations make merging recently? Then, taking Sanhua Corp. (Stock code:002050 ) as an example, by analyzing the process of Sanhua Corp. merging, the author reveals the biggest secret is in the assets evaluating, different ways bring different results. It is assets evaluating that brings a huge value-added for big investors, which is the true reason many firms joining the merge activities.In the fifth Chapter of this paper, the author adopts empirical method to reveal that two specific stock indexes (code: 002050 and 002011) is relevant with the HUSHEN300 index, in other words, merging only influence the special point of stock index, the span of time is short and temporary. Moreover, for better understanding the operation performance compared before merging and after merging, the author adopts three ways: Firstly, comparing the variance of stock price, empirical approach discover stock price of Sanhua Corp.(002050) and Dunan Huanjing(002011) is strongly relevance with the HUSHEN300, in other words, merging can not influence the specific stock price in long running. Secondly, according the importance principle, the author adopts several financial indexes, then give each index a certain value, therefore, get a conclusion that the performance of merging is worse after merging. Thirdly, discussing 6 objective company's operation condition, the author catch that only 2 objection firms operate better after merging, the other 4 objective firms works worse. This result reflects that management effect and other effect have not shown in the short time.In brief, merging is an effective capital operation in China stock market in the short time. The only way for private enterprise is promoting the management, changing the business concept, bettering the decision system.