The Research About The Life Cycle's Influence On Mergers And Acquisitions Performance

With the rapid development of modern economy,companies of all countries gradually realized that they cannot use only these resources,accumulated through their own business,to make sure themselves continue to grow.Meanwhile,the kind of single-mode operation in the past also hardly allows the companies to stay in business.Mergers and acquisitions(Mergers and Acquisitions),as a means of effectively aggregating human resources,capital and technology in a relatively short period of time,expanding production scale and optimizing the industrial structure,has become an important way for countries over the world to achieve external developments.With respect to the Western countries,China's M&A paced slower and started later,only going through the past twenty years.With the development of China's own economy and the acceleration of economic globalization,the key issues of M&A-research on M&A performance also closely attracted the attention of theoretical and practical sessions.There are many factors on M&A performance,so the thesis selects the factor of company's life cycle and studies how to influence the performance of M&A.First,the thesis expounds the research background and significance,the paper's main content,frame,technology roadmap research methods shortcomings;Secondly,the thesis introduces the theory of M&A and the life cycle of companies.It makes a list of domestic and foreign scholars' studies of M&A Performance,as well as the correlation ones of factors,and draws some simple summary;Furthermore,the article refers to the theoretical basis,the evaluations method of M&A performance,and how to identify the company in what stage of the life cycle;Then is the core part of this paper,the empirical analysis of the M&A performance.It introduces the data sources,selection sample criteria.The sample will be classifies in different life cycle,using the financial indicators out of the system architecture,applies the factor analysis to the performance of M&A in the previous year(T-1 period),the year(T stage),one year after M&A(T + 1 period),two years after M&A(T + 2 period),three years after M&A(T+3 stage),to calculate five-year comprehensive scores in different life cycle,and analyze M&A performance;Finally,the paper advices how to improve the performance of listed companies in China,which is based on the front part of the empirical analysis.This paper concludes that in the growth stage of companies,M&A activity will significantly improve operating performance.