On M&A Performance Evaluation Based On The Improved Balanced Score Card

Presently, in the competitive market circumstance, mergers and acquisitions(M&A) has become the preferential business development model for the most companies, which weakened the impact of trade barriers and reduced the financial risk resulting from the early low-return businesses. With an outstanding number of M&A events and scale expansion, more and more scholars began to pay attention to studying how to evaluate the performance of M&A objectively and comprehensively. That makes evaluation of M&A performance become a popular theme in the field of financial research.The Balanced Score Card(BSC) is a strategy performance management tool raised by Robert S. Kaplan and David P. Norton in 1990,which can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. It introduces customers,innovation and learning, and internal processes into the model, in order to take into consideration the company's indicators from financial and non-financial, internal and external, short-term and long-term level.The Balanced Score Card does not apply in respect of mergers and acquisitions(M&A) directly as a convenient tool to evaluate the routine operating performance of the enterprises. It emphasized the profitability and soundness of the business activities in the daily life. While in M&A activities, it focused on expansion and synergy. Therefore, he author deeply analyzed the indicators of the BSC to epitomize the operating synergy within mergers and acquisitions built on the concept of the Balanced Score Card.This article mainly consists of 5 parts, including “Introduction”, “Theory Research”, “Construction of Improving Index System of the Balanced Score Card”,“Case Studies” and “Conclusion and Recommendations”. The first chapter introduces the background, significance, literature review, content, method, disadvantages and innovation of the research. “Theory research”focuses on the basis of theories relied on the BSC and M&A performance. Chapter 3 describes the process of building a new Balanced Score Card. The fourth chapter in this article uses theories and research methods it described above to analyze and give commendation for the merger case of Letv and Huaeryingshi. Chapter 5 is “conclusions and suggestions”, which makes the evaluation and provides relevant recommendations.The essay uses a methodology to combine normative research, case studies and event study method together. Moreover, it selects the merger case of Letv and Huaeryingshi as a research object, for a high reference value in the recent years.