Research On The Effect Of M&A For The Company Performance

As the standardized development of domestic M&A activities in recent years, for decision-makers, whether M&A can improve company’s performance becomes the first concern and also be the benchmark of mergers and acquisitions. But academia and industry differ on whether M&A can improve company’s performance. For instance, whether M&A is a feasible way to accelerate the development of Chinese enterprises, or whether the listed companies can fulfill the optimization of resource distribution, improve the performance by means of mergers and acquisitions. What is the approach to enhance the performance of the company by M&A? The listed companies should choose which approach to enhance the performance? The above mentioned problems solving will be crucial and necessary to the study about the relationships between M&A activities and operating performance of China’s listed company, meanwhile, it will also have the practical value and a profound influence for China’s listed company on selecting M&A activities and protecting the rights and interests of investors.This study mainly use evaluation indicators of Chinese Listed Companies to measure the performance of listed companies, use the mergers and acquisitions of listed companies in2011as research target and then analyses the path of mergers influence to companies’performance. In terms of overall change of listed company merger and acquisition performance of listed companies before and after the change, and from the industry, the types of ownership types of M&A and M&A of listed companies conducted descriptive statistical analysis, and then from industry potential, potential energy and enterprise efficiency three dimensions, the author analyzes the reasons of changes in the company’s performance, finally through the analysis conclusion and provide Suggestions for enterprise mergers and acquisitions act:when the trend of industry rises, conglomerate merger is more conducive to the company in upgrading the status of the industry; Horizontal merger is more conducive to non-governmental companies in upgrading their overall performance; Horizontal merger is more conducive to enhance the ability of creating the value of companies’assets. The author expects for the choices of listed companies belonging to different sector of the economy can promote the company’s performance of M&A behavior to provide the reference.