Research On Performance Evaluation Of M&A Of Listed Real Estate Companies In China Based On Factor Analysis

Enterprise merger and acquisition has been one of the hot topics in the world,it is prolonged.The majority of enterprises chose mergers and acquisitions as the preferred development strategy,As early as the end of nineteenth Century and the beginning of the twentieth Century,the western countries began to appear in the merger and acquisition behavior,so far it has been more than 100 years old,and Chinese M&A development is relatively late,the history is less than thirty years.In 1980 s,China reform and open up to the outside,start the wave of mergers and acquisitions in China,the mergers and acquisitions activities of the real estate industry have become more frequent,mainly because of continued government regulation,increase of financial pressure of small and medium real estate,the increasing difficult of financing,a large number of diversified and specialized small enterprises are gradually eliminated,and a number of listed real estate companies that seek to survival and development through mergers and acquisitions gradually emerge.But as everyone knows,the real estate industry involves large funds,long payback period,high risk,opportunities and risks coexist,enterprise merger and acquisition is a systematic and complex project,involving many aspects,whether the merger and acquisition of enterprises bring the expected effect for real estate enterprises is worthy for us to think deeply and study on performance of M&A.In this paper,we use theoretical and empirical methods to evaluate the merger performance of Chinese listed real estate companies in 2013.First,the paper describes the research background,the significance of this study,and the main research foundation of this paper,a brief description of the research contents of this paper.Secondly,based on research results of the performance of mergers and acquisitions at home and abroad,combined with the background of the development of Chinese real estate industry and the present situation of mergers and acquisitions of listed real estate companies,finally according to the detailed rules for the implementation of comprehensive performance evaluation of central enterprises in2006 and the research by Zhang Yulan,Jiang Zhenna,Liu Yang(2012),the paper identifies11 evaluation indexes from the four aspects of corporate profitability,operating capacity,solvency,development ability,builds a performance evaluation index system of M&A.Then,through the steps of factor analysis,the paper builds a comprehensive performance scoremodel by using 11 selected evaluation indexes,calculates the comprehensive performance scores of the listed company for five years before and after the mergers and acquisitions to observe the changes of operating performance of listed real estate companies before and after merger and acquisition,the research results find that the performance decreases significantly in merger year,the performance begin to rise slowly after the merger in recent years,until three years after the merger the performance exceeds the previous year's performance.Finally,according to the results of empirical analysis,some suggestions are put forward to improve the merger performance of listed companies in China.