The Evaluation Of Merger Performance Of CRRC Based On The BSC

Merger is an important way for a company to enlarge its scale and add its value.With the further opening up of China,many state-owned enterprises deepened their reform constantly.Many of them realized the “going out” strategy and optimized the distribution of their resources,and improved their overall strength in the end through mergers.However,the completion of a merger does not mean the success of the merger.With more and more mergers happening,we saw lots of mergers place the merged company in a disadvantaged position and finally led to the failure of the merger due to poor integration.Therefore,an appropriate evaluation for the performance of a merger is becoming more and more important.Instead of short-term evaluation only,the evaluation should last until the completion of the integration.Merger origins from abroad,and foreign scholars have a more intensive study about merger performance.With more mergers in China,Chinese scholars start to focus on the evaluation of merger performance as well.However,scholars failed to reach an agreement on which method can better reflect the performance of a company merger.Thus made how to evaluate the performance of a merger become a subject worth unceasing exploratory.The traditional study methods of merger performance either pay too much importance to the financial performance or only focus on a short period after the merger,ignoring the non-financial factors' influence on a company's performance,and the integration after the merger,while the latter two factors are crucial to the performance.The balanced scorecard is a relatively comprehensive system of performance evaluation.Using it in the study of merger performance is creative exploratory with practical significance.Based on that,this study introduces the balanced score card performance evaluation instrument to the study of merger performance,takes the CSR's merger of CNR through share swapping establishing CRRC as the object of study,examines the merger of CRRC in a comprehensive way by establishing a merger performance evaluation system based on balanced score card.This paper starts with a summary of the study methods of merger performance home and abroad,and points out that the disadvantages of the traditional methods of studying merger performance.This paper then introduces the balanced score card index evaluation index system,and summarizes cases in which scholars using the balanced score card for merger performance evaluation.This paper then studies the merger activity of CRRC.In this part,this paper starts with the profile of CSR and CNR,then the background and the motivation of the merger is analyzed.This paper sets up a specific index system suits the evaluation of CRRC's merger performance from four aspects,namely finance,clients,internal process and learning and growing.Based on that,this paper studies the CRRC's merger performance through the index system designed earlier in depth and makes a case summary.By studying the performance of mergers using the balanced score card,the findings of this paper are: firstly,compared with the traditional ways of performance evaluation,evaluating the performance of mergers by using balanced score card allows people to evaluate the performance from financial and non-financial aspects,and combined long term evaluation with short term evaluation.This method has advantages like being able to adjust according to the evaluation.Secondly,this paper builds an evaluating system that suits CRRC's merger performance from the perspective of balanced scorecard and ran it.Last but not the least,notes for the appliance of this method are provided in this paper in the hope that it could be a useful reference for other companies when using the balance scorecard for merger performance evaluation.