| The fifth global tide of M&A has been rising since 1990s. In addition, with China's official entry into the WTO on Dec 11th 2001, there will be a great change happened in China on the investing measures and investing fields of the foreign investors. Foreign investors can enter into new investing fields, including insurance, banking and media. Also, the investing measures will be transformed from Greenfield investment into M&A. Consequently M&A will become a main measure of foreign capital entering into China in the near future.However, most of enterprises doing M&A didn't get good post-merger performance, which seriously disturbs the development and maturity of M&A in China. In this paper, a synthetic assessment model on performance of M&A will be created. Empirical research on the stable and long run post-merger performance of the enterprises will be done with the synthetic assessment model mentioned above. After that, we will do research on the two factors affecting post-merger performance: post-merger integration and how to construct a supporting environment, and bring up our own views and methods. The outcome of the research will help managers of acquiring enterprises to improve post-merger performance and to gain increasing control over the post-merger performance.Followings are the main focuses in the research:1. All theories in finance related to the post-merger performance of enterprise, including theory of capital structure, theory of synergy, theory of diversification, theory of management versus stockholders' interest and theory on redistribution effect, and methods related to post-merger performance evaluation, including events study, have been analyzed to meet the need of rese The results of the study will put a concrete foundation for further study in this field.2. We take full use of financial data of enterprises taken as sample, integrating the reality of the capital market in China, to build a synthetic assessment model of post-merger performance.3. Based on the synthetic assessment model, an empirical analysis has been deliberately done. Through the empirical research, we get some good conclusions and views.4. According to the results of the empirical research on the post-merger performance, the comprehensive research on two factors, including post-merger integration and external supporting environment both affecting the post-merger performance has been done. The results of this research will help managers of enterprise improve post-merger performance in practice.5. Some views firstly put forward as follow:(1) For the long run and stable post-merger performance of enterprises with new relationship of property right, we conduct a significance analysis on financial data of the sample enterprises to build a synthetic assessment model to assess post-merger performance of sample enterprises with new relationship of property right after merger. The assessment model is more scientific, since the index system on the evaluation of post-merger performance has been chosen scientifically, not randomly. We take advantage of this model to assess post-merger performance of the sample enterprises. Through the empirical research, we get some useful results in accordance with the reality in China, and discuss them.(2) According to the results of the empirical research and some real problems brought out in practice, we firstly put forward a proposal that we should improve post-merger performance from two important factors, including post-merger integration on the tangible resources and intangible resources of enterprises and how to set up a favorable external supporting environment, which will provide managers a new angle and method.(3) We make a study of post-merger integration carefully, integrating some typical examples of some international enterprises, including GE and National City Bank of New York. And then we firstly put forward a model of integration management with four stages, including stage of pre-merger assessment, stage of preparation f... |
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