An Empirical Study On M&A Performance Of Retail Listed Companies In China

During the past20years from1992to2011, China’s retail industry has experienced rapid development. China’s social retailgoods growth from1.09937trillion yuan to18.3919trillion yuan, increased16.73times.The average growth rate of social retailgoods is16.19%. Retail industry is playing a more and more important role in the process of national economic development.In2001, We joined the world trade organization. China’s retail industry began to open. In2004, We realize comprehensive opening to the retail trade. The world retail giants have entered our country, and local retailers faced giant challenge.Compared with large foreign retailers, Local retailrs was less competitive, in a small scale with low efficiency. In order to compete with foreign retailers, the retailers in our country started merger and acquisition with the push of our government.Mergers and acquisitions can help retailers to controll new channels, to enter new market quickly, and to expand market. But m&a success is influenced by many factors, not all can benefit to the enterprise. Research has shown that more than sixty percent of the m&a is not successful.There is much research about M&A performance, very few about the retail industry. However, each industry has different characteristics. Retailing is an industry of obvious scale economy characteristic. In recent years, merger and acquisition activity of China’s retail industry has increased.It becomes a strategic for retail enterprises to expansion. However, there are few research about retail enterprises’m&a performance.We choose listed retailing company’s merger and acquisition events our country as samples to study the performance of merger and acquisition performance.I first nstruct the background, the significance, the framework and innovation of the research. Then introduces the m&a theory, m&a performance research method, the influence factors of m&a performance. The third part of this article introduces the detail of our country’s retail and retail formats. Then introduces the merger and acquisition of the retail enterprises in our country and the influence for retail market concentration. In the fourth part,I analyzes merger and acquisition performance of the listed retail enterprises from2004to2009of our country using the method of factor analysis. Choose39retail listed company merger and acquisition cases as samples from2004to2009and selected the10index as a enterprise performance evaluation standard. Do dimension reduction to performance indicators through the factor analysis method. Then evaluates the merger and acquisition performance of the previous years. One year after, and the second year. Through the contrast we found retail enterprise m&a performance is not ideal in China,merger and acquisition could not bring to enterprise performance significantly improve. Finally,I summarizes the research, and points out that the article research deficiency, and the possible future for further research.