The Evaluation Research Of Financial Integration After Chinese Listed Companys’ Cross-border M&A

Economic Globalization on the company’s most direct and important influence is undoubtedly that it strengthens and promotes the enterprises into the international market. Not only because it help companies to sell themselves on the international market, but also that it is one expanding way of realizing transnational business and foreign direct investment. Cross-border M&A means opportunities and risks. These risks are not only turbulent economic situation and changing international environment, the more important is the effect of enterprise integration after mergers and acquisitions. Among them, the integration of the results will directly affect the overall effect of the merger integration, and it also will be directly related to the success of M&A activity. Therefore, correctly and properly assessing the effect of financial integration of M&A enterprises has important significance on improving the quality of Chinese cross-border M&A activities. Besides, it is also instructive for other Chinese enterprises’ M&A activities.This paper selects the 50 Chinese listed companies which has the cross-border M&A activities from 2008 to 2013 as the sample data. Firstly, according to the financial integration of content and influencing factors, we establish evaluation index system of financial integration by using accounting methods. Secondly, we start to the next section of dimension reduction factor of the selected indicators by using the principal component analysis with SPSS software. Finally, we calculate the M&A companies’ composite scores of financial Integration over the M&A five years. This paper compares and analyzes the M&A corporate composite score from the perspective of the overall sample and different times and different industries. The conclusion as follows:(1) Judging from the overall sample, M&A activity did bring significant business benefits of wealth for most companies in the M&A year. The financial performance composite score of companies which is improved accounts for 40.91%, but the ratio is not high. The financial integration performance composite score showed that half of the listed companies in cross-border mergers and acquisitions carried out after a relatively successful financial integration in the selected sample within two years.(2) The financial performance composite scores of companies drop by the influence of international development trend, the global economic environment and the impact of national policies of the merged companies. Instability of the international financial crisis and other economic environmental factors often lead to the integration of financial performance score of many companies after the merger fall.(3) In recent years, Chinese manufacturing enterprises in the financial ability to integrate acquisitions has increased after M&A, and their financial performance composite scores also increase slowly.After statistical analysis of the 37 listed companies’ financial performance integration, this paper puts forward the countermeasures and suggestions from both government and business point based on the conclusions, hoping to improve the performance of listed companies’ financial integration after the cross-border M&A, and making sure the cross-border M&A activities bringing real wealth growth and more develop opportunities for companies.