A Study On The Financial Performance Of M&a Between Eastern Airlines And Shanghai Airlines

In recent years,competition among enterprises has intensified with the advancement of global economic integration.Capital extension has become a significant approach of victory in the competition.The quickest way to achieve rapid capital extension is through mergers and acquisitions."Strong combinition" of the merger model from the 5th wave of M&A has become the most common model so far.Through the M&A,each enterprise could obtain each other's resources,so that they could develope collaboratively,and finally reached the win-win goal.At present our country in the stage of industrial adjustment,China's increasingly close contact with the world economy,increase of enterprise merger cases.At the same time,even if think through m&a can improve enterprise performance theory research level,but not all mergers and acquisitions cases are successful.Therefore,the enterprise m&a performance can be improved,for the enterprise m&a theory and the practice significance.This article will study of eastern airlines Shanghai airlines is absorbed case.This case is different from the previous "combination" case,the two are actually "weak coalition".Two are facing financial risk and delisting,hope that through absorbing merger,found in the difficulties in the direction of development,in order to improve competitiveness and reduce the effect of the related costs.This paper hope through the analysis of merger and acquisition process,understand the m&a motives,financial and non-financial performance before and after the merger and acquisition comparative analysis,summarizes the merger will bring experience,hope to be able to serve as a reference for China's listed companies mergers and acquisitions in the future.The main body of the paper includes five chapters: The first Chapter mainly discussed about the background,the significance and the methodology of the research as well as the structure and the research review of the M&A performance domestic and aboard.The second chapter mainly discussed about the correlation theory of M&A performance.The third chapter mainly introduced the M&A case of China Eastern Airlines and Shanghai Airlines.The forth chapter mainly compared the midterm and long-term financial performance in six years before and after the merger.The Financial indicators aim to reflect the performance of the enterprises in the past.Meanwhile to analyze the performance of the merge through non-Financial indicators like the market share,customer satisfaction and flight punctuality,etc.The fifth chapter summarized the results of financial and non-financial analysis,which on a whole the merger between China Eastern Airlines and Shanghai Airlines is a success but some detail requires improving.Also,this chapter will provide some hints about the M&A performance so enterprises will be able to refer in the future.