The Economic Consequences Of Overseas M&A Research

Mergers and acquisitions is an important means that enterprise grow bigger, and to achieve optimal allocation of resources. As globalization continues to promote and develop China’s market economy matures, more and more types of merger cases. But at the same time, we should also note that while the theoretical studies suggest that M&A can improve business performance, but in fact is not the mergers are successful. As participants in M&A, the level of performance of listed companies, the degree of realization of acquisition targets, as well as the acquired company’s financial situation, decision theory and practice of M&A. Therefore, analyse the performance of SY overseas M&A DX, discusses the economic consequences of Chinese enterprises overseas mergers and acquisitions, and dedicate to give an exampele for other enterprises doing the same transactions.The author studied the case of SY after combining the reality of M&A in china with related materials First use of short-term market reaction, and selects the abnormal return and cumulative abnormal return to assess the short-term market reaction of M&A; used of continuous buy and hold abnormal return of M&A occurred within 36 months of long-term market performance evaluation. And then the comparative analysis of mergers and acquisitions before or after the announcement in the short term the quarter’s financial situation and the use of DuPont evaluation system to analyse the long-term operating performance after M&A.Through the acquisition of specific cases occur SY company analysis found that after the merger the company SY.whether short-term or significant reduction in long-term shareholder wealth obtained, the acquisition does not mean SY should bring benefits to shareholders. And the post-merger financial performance significantly decreased, indicating merger did not give SY bring synergies. In addition, with the case of this article, the author summarizes some serious inspiration, guide participants to avoid the acquisition after acquisition risk, improve acquisition performance.