The Study On The Overseas M&A Performance Of The Equipment Manufacturing Industry’s Listed Company

The equipment manufacturing industry is the foundation of the national economic development. In recent years, with the acceleration of Chinese enterprises "going out", China’s equipment manufacturing industry is also actively involved in the global allocation of resources. Only in the first quarter of 2015, seven overseas mergers and acquisitions have taken place in China’s equipment manufacturing industry, involving the transaction value of about 2.394 billion Yuan. China’s equipment manufacturing industry has entered a new stage of overseas M&A. In the existing research of overseas M&A, there is no concept of the equipment manufacturing industry abroad, so overseas studies only have certain guiding significance on measuring method. Meanwhile, domestic research barely focused on the equipment manufacturing industry, therefore it is lack of theory in the perspective of the equipment manufacturing industry of overseas M&A. Whether overseas M&A can bring about expected effect? This question becomes important subject in the equipment manufacturing industry and is also the main research content of this article.This article study from the point of the present situation and characteristics as well as the current problem of overseas M&A. We found that compared with other industries, the equipment manufacturing industry’s overseas M&A are mainly because of their technical demands as to the technical access type of M&A. Meanwhile, the industry faces problems such as culture difference and employee turnover. In the research of M&A performance, this paper first describes some forms that overseas M&A had on the equipment manufacturing industry. Then this paper uses Data Envelopment Analysis (DEA), selected 15 overseas M&A listed equipment manufacturing enterprises from 2001 to 2011. We exam that whether enterprise performance get promoted to DEA effective after M&A events happened. During the study period, M&A events had a significantly negative effect on the DEA performance. The enterprises performance declined since M&A events happened, and the downturn still lasted in the third year after the merger. The research results show that all the M&A performance of listed companies during the investigation period did not achieve DEA effective, and is far from effective performance.