| Michael E. Porter once referred to M&A has a sense of magic in his 《Competitive Advantage》——seemingly signing a humble paper contract, often involving hundreds of millions of dollars of funds flow, triggering media concern and society discuss, or even cause the market reaction. George J. Stigler also once said:"all the big companies in the United States are not relying on internal expansion to grow up, they mostly by a certain degree of mergers and acquisitions to gain resources and market, eventually achieving the development goal." Both the two masters reveal a common truth that mergers and acquisitions have become an important way for modern enterprise to develop and expand rapidly. Indeed, merger and acquisition have been playing a more and more important role for the redistribution of social resources under the market economy system, improvement of the performance of the listed companies as well as the improvement of assets quality. But because of the complexity and diversity of M&A itself in the choice of target enterprise, price calculation, payment options and integration, many companies do not fulfill their goal on schedule.In our country, there has been three times of M&A boom during the past30years since1978when the reform and opening up policy were carried out. Although the number of merger and acquisition events has significantly lower than before due to the impact of the global financial crisis in2008. But the research result shows that M&A activities rise from2009to2011, points out that since2009, the Chinese enterprises overseas M&A unwilling lonely, hip, the situation that rising quarter by quarter; And the number of deals in China’s M&A market has realized the spurt of growth in2010and2011. On the one hand, the number of M&A is continuing increasing, on the other hand, there also appeared many problems at the same time. One of the main problem is the result of mergers and acquisitions, performance, has been ineffective, enterprise can’t achieve their goal through M&A activity.M&A failures are ubiquitous, so the research of whether M&A can improve company performance has undoubtedly of important practical significance and theoretical value. In the past long period of time, the research of M&A performance evaluation are mainly the method based on the stock market and the financial evaluation method based on financial data. But in recent years, more research demonstrates the EVA is more explanatory for the performance of mergers and acquisitions. So academia began to do more and more case studies and empirical model based on the EVA performance evaluation methods of M&A. In January2010, the State-owned Assets Supervision and Administration Commission issued "interim regulations of operating performance evaluation of the head of central enterprise", requiring the comprehensive implementation of EVA assessment of central enterprises. EVA is becoming effective management tools both in academia and the government.In this paper, the main contributions are the following aspects. Firstly, combing the M&A motivation theory, summarizes on the basis of EVA performance evaluation of mergers and acquisitions of domestic and foreign literature on the basis of reading lots of literature, this is not seen in previous research, and the existing performance evaluation of M&A methods make a comparison after trying to western popular company EVA performance evaluation tools to use and evaluate the acquisition performance of listed companies in China. Secondly, from the perspective of practice, analyze and evaluate a M&A case of a private enterprises, the representative enterprises in the industry, so it is of great significance for the future of their similar properties or the same industry enterprise development path. Thirdly, Under the condition of M&A enthusiasm are not high due to the financial crisis, choosing China’s listed companies as research samples is of strong practical significance. Fourthly, through the case study found that the present stage of merger and acquisition to acquisition enterprise performance impact is not significant, which can lead to thinking for other type enterprise of the same size and same type.Because of the author’s narrow knowledge, and short research time and other objective reasons, this paper has the following deficiencies:(1) any method has its advantages and limitation, EVA system is not an exception. Although EVA method has the advantage of the theory to eliminate the influence of some distortion on accounting standards, but is not a perfect indicator, this paper from a new angle to evaluate the value effect of M&A, wishing to have the new findings.(2) In this paper, the window period of the research on M&A performance of1-3years before the M&A, samples of the company’s operating performance will be affected by the economy. Due to failing to come to a complete economic cycle performance of sample companies mergers and acquisitions, so this paper get the M&A performance of listed companies also may be the window period of the adverse impact of economic environment and deviate from the true level.(3) Changes in the increase or decrease in performance after the mergers and acquisitions, except under the influence of merger and acquisition activity itself will also be affected by other factors, such as macroeconomic factors, industrial development and performance factors such as the sustainability of enterprises before M&A. But this paper does not find ways to eliminate other factors affecting the performance of mergers and acquisitions in order to achieve more real reflect the performance of mergers and acquisitions activity purpose, so it is inevitable that flaws and the insufficiency.(4) This paper selects a case number, sample size is too small, and in the process of argumentation transverse comparison profound enough comprehensive making its research results is not very convincing.(5) The academic theory and method of this paper is drawing lessons from former researcher’s results, so it is not very innovative. |
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