Research On The Performance Of M&A For Target Firms Based On EVA

Along with the continuous penetration between our country’s economy and the world’s economy and the gradual matureness of the capital market, corporation M&A in our country is also increasingly active, the amount of M&A is growing at the speed of more than 70% every year, China has become the third largest M&A market in Asia.It is predicted that in the next few years, China’s M&A market will enter a rapid developing stage, M&A has become a hot research topic in the field of economic management. Specific to the car industry, as the automobile industry’s competition is increasingly fierce, M&A of the world’s automobile industry has become increasingly frequent, the speed of domestic car industry’s M&A process is also obviously getting faster. Since 2011, the state council has issued a series of policy measures for promoting the development of the new energy vehicles, in the double requirements of the policy booster and industrial upgrading, the pace of automobile industry listed companies’ M&A in the future will be more and more quickly.So, the effect of M&A to enterprise performance is positive or negative?Whether acquiring company can expand through M&A? Whether the target company should take this opportunity to accept the M&A to enhance enterprise competitiveness?However through synthesize domestic and foreign related research, we can find that for the research of M&A, more scholars stand on acquiring company ’s position to study the effects of M&A on corporate performance, the studies of M&A performance on the target company are less. In this context, the study of the influence on the target company’s M&A performance of our country’s automobile enterprise is of great significance. Therefore, this article selects Yangzhou Yaxing Motor Coach Co., Ltd be acquired as the case, first of all, this paper expounds the connotation and related theoretical basis of M&A, M&A performance, EVA; then, according to the specific circumstances of Yangzhou Yaxing adjusts EVA index related accounting events, and calculates and analyzes the EVA of before be acquired four years and after be acquired four years of Yangzhou Yaxing; finally, according to the changes of EVA todiscusses the reasons why the case of Yangzhou Yaxing be acquired is successful, and puts forward the Suggestions of how to help Yangzhou Yaxing continue to improve enterprise performance, so can help the later automobile enterprises who want to improve the operating performance and enhance the competitiveness through the way of being acquired.The result shows that the enterprise performance of Yangzhou Yaxing after M&A has obvious improved than before M&A, it shows that M&A has positive effect on Yangzhou Yaxing. While in the third year(2014) after M&A the enterprise performance fell, but consider the external factors of the overall variation of economic environment in 2014, therefore, may safely draw the conclusion: the influence of M&A on the target company’s enterprise performance is positive. The above research conclusion can provide certain theoretical guidance to the automotive enterprise who wants to improve the operating conditions and provide management implications to the sustainable development of the entire automotive industry.