An Analysis Of The Value Effect Of Ping An M&A In China

With the acceleration of the process of interest rate liberalization in China,various financial institutions have accelerated the pace of diversification.Under the legal environment of separate operations,mergers and acquisitions are an important form of diversification by financial groups.According to the empirical research results of previous literatures,the performance after M&A is affected by many factors such as payment methods and types of mergers and acquisitions.There is not much improvement in the performance of Chinese enterprises after M&A,and the losses caused by M&A failures are even more severe.Does the marriage between banks and insurance really bring about positive value creation,or does it damage corporate value?This article,under the guidance of the incident research method and the accounting research method,takes Ping An Insurance acquisition of Shenzhen Development Bank--the first acquisition case of mixed operation in the financial sector in China,as an example.Starting from the industry background and financial status of the pre-merger enterprise,focuses on the analysis of the short-term response in the secondary market after the merger and acquisition and the long-term improvement of the financial performance of the company to reflect the value effect of the company's mergers and acquisitions.The results of the study show that the M&A market has given a positive reflection in the short-term,and M&A has achieved significant excess returns.After the merger and acquisition,by the end of 2016,the overall performance of Ping An's profitability,operating capability,growth capacity and solvency was good,but the operating efficiency had declined to varying degrees.The research results of this paper provide useful inspiration for value-oriented mergers and acquisitions in China's financial industry.