The Application Of The Model Of EVA In Merger And Acquisition Performance Of CORUN

As an important part of capital operation, Mergers and Acquisitions (M&A) provides a strong impetus to both the business improvement and strategic target realization, and also affects company resources optimization. As an important evaluation factor for the valuation of M&A results, M&A performances reflects the realization of ultimate strategic, and on the other hand, it can indicate whether the business value increases or not. On the background of merged enterprises, we compared the familiar evaluation methods including Stock Market Price, Financial Index Analysis, and Economic Value Added(EVA). Considering that EVA can reflect equity capital costs and debt capital cost simultaneously, we regard it as an effect method to measure the evaluation of M&A Performances.After theoretical analysis, we take Hunan Corun New Energy CL..LTD(CORUN) as an example to analysis M&A Performances. Comparing the EVA of the first two years before M&A and three years after M&A, we find that:(1) the M&A performance of CORUN is better than the industry average at the poor trade of total industry performance;(2) the short-term M&A performances in the two years after acquisition is more significant than a longer performance, and the third year of M&A performance indicates a decline in a long run. With the consequences, we try to analysis from the aspects of the integration of industry, personnel, culture after the M&A; the understanding of EVA. We found that, the integration of the industry and culture is a positive effect to the M&A performance of CORUN, but the personnel integrations and the concept of EVA of the personnel is adversely effect to the M&A performance. Besides this, we also make some suggestions for the improvement of M&A Performance for CORUN.