An Correlation Analysis Of Mergers & Acquisitions Selection And Corporate Performance Based On The Medical Listed Companies

In recent years, Merger and Acquisition(M&A) activities has become the main form of development of modern corporation and important way of supernormal development and improving performance ,thus it has played a vital part in the strategy of enterprise's development, Along with the continuous development of medicine industry, Merger & Acquisition of pharmaceutical industry development rapidly. In order to understand current situation of M&A and analyze the relationship between merger acquisition and performance of the pharmaceutical industry, this paper takes the company who occurs merger as the research object, analyzes its M&A motivation, explore the method and performance of merger & acquisition, and in the light of the empirical results to put forward the corresponding policy.The paper bases on the correlated theories of merger, reviews the research achievements of merger & acquisition both at home and abroad, combines pharmaceutical industry development process and characteristics of mergers and acquisitions, in order to analysis the internal and external causes of M&A in our pharmaceutical industry. The paper analysis the action of correlate and diversification M&A, collecting and cleaning up 133 listed medical M&A issues during 2002 to 2006 from Hu, Shen stock market, the paper control company scale,the company set up fixed number of year and other factors, then proposed the correlation assumption between merger type and corporate performance, constructed merger types on corporate performance influence of empirical model. Through sorting these companies financial performance index from one year before the M&A to three years after the M&A, after quantitative statistical analysis and multiple regression these relevant date and finally reach the following conclusions:First, the impact on the performance of the correlation and diversification is very different.Second, from that year to two years after merger and acquisition , corporate performance who occurs relevant merger improved, although performance decline at three year after M&A, overall performance is good than it before M&A. Diversification can improve the performance at the year of M&A, but long-term performance is not good, it appeared discount effect. Relevant M&A can improve corporate performance in short term while diversified M&A negative impact on performance. It is enough to indicate that M&A of our medical industry won't obtain better performance, integration should be strengthened after merger and acquisition.By comprehensive use the normative research and empirical studies method, studied and analyzed the related issues on our medical industry's action of M&A. Thus ,it will propose the theoretical support and guidance for the medical industry and provide the purpose reference for pharmaceutical enterprise's mergers and acquisitions in the future.