Based Accounting Research Act Of Mergers And Acquisitions And Corporate Performance Empirical Study

One big trend of nowadays is enterprises always select M&A to promote their competitive power when coming to some development stage. However, can M&A itself advance company's competitive power, and then promote company's value? The accounting-based study method is used in this paper.After the empirical study on the population of 139 listed companies which occurred M&A affairs in 2005, the author reaches the conclusion that:1) whatever short or long period, M&A fails to evidently bring increase of purchasing company's performance. In the contrary, purchasing company's performance appears continuing deterioration in the following two years after M&A. What we should pay attention to is that purchasing company's performance begins to improve in the third year after M&A.2) both the type of M&A and the industry of purchasing company have impact on the purchasing company's performance after M&A.