Study On Mergers And Acquisitions By State-owned Enterprises Based On Different Competitive Level

Since tradable share reform completed in the end of 2006, the merger and acquisition(M & A) market has become increasingly active. It is Zero2 IPO Research statistics show that in 2013 the amount of M & A transactions and trading volume hit a record high, known as "China M & A bumper year" [1]. As the engines to enhance the creativity and the competitiveness of enterprises, M & A are "sought after" by more and more modern companies. To state-owned enterprises, a current theory and practice problem to be solved is how to profit from this merger tide. In the light of the above, this paper discusses the M & A performances of state-owned enterprises.Based on the scientific analysis of pervious research and theories, Economic Value Added Per Share(EVAPS), which is proved by the factor and correlation analysis more effective than Economic Value Added(EVA) to evaluate the M & A performances, is proposed in this paper. In the empirical analysis part, 103 state-owned enterprises that had mergers and acquisitions in 2009 are chosen as samples, and the descriptive statistics and paired sample T test are employed. Conclusions can be obtained from the M & A performance data from the samples from 2008 to 2013, that M & A cannot generate a certain value increase, and the majority of enterprises sink into recession to different extents after a brief rally.The innovation of this paper is that, from the viewpoint of industrial difference perspective, three factors, industrial competitive level, industry-intensive and industrial cycle, which influence the M & A performance of state-owned enterprises, are tested via comparison studies. The summaries are as follows: the M & A performances of protective industry are better than that of competitive industry; the M & A efficiencies of technology-intensive industry are higher than that of labor-intensive industries and capital-intensive industries; the M & A performances of maturity and growing industry are significantly better than that of evolving industry and recession industry.Based on the above findings, three suggestions are made to China's state-owned enterprises mergers and acquisitions, which are expected to contribute to promote the healthy development of China's M & A activity.