| Since 2016,China’s household electrical appliance industry has made large mergers and acquisitions(M&A)frequently.As affected by the external environment where Sino-American trade friction makes an impact on export of enterprises and the internal environment where the downward pressure of domestic real estate and the cross-border appliance manufacturing of Internet enterprises,the domestic household electrical appliance industry faces new challenges.More and more enterprises in the industry hope to seek new development impetus through mergers and acquisitions.Then whether M&A can bring value promotion to the domestic household electrical appliance industry,and what are the factors will affect the performance of M&A,which becomes the research focus of this paper.Compared with other industries,there are few literature on the empirical research of the M&A in the whole industry of China’s household electrical appliance.This paper combines two methods of performance evaluation--event study and factor analysis,selects the M&A events of A-share listed company of China’s household electrical appliance industry from 2006 to 2015 as the sample,carries on the share price performance analysis and the financial performance analysis,at the same time,selects the variable,and puts forvward four research hypotheses,carries on the regression analysis to the M&A financial performance influence factors.The empirical results show that the average abnormal return(AAR)of the total sample is significantly increased on the day of the event,gradually decreasing during the window period after the event date,but remained positive in the first 5 days.The cumulative average abnormal return(CAAR)is significantly increased and positive on the day of the event and is significantly positive for the window period after the event date.The comprehensive perform ance score of the factor analysis showed a large decline in the year of M&A,rising in the first year after the M&A,and falling again in the second year after the merger.In general,the performance improvement brought by M&A for China’s household electrical appliance enterprises lacks continuity,the short-term share price performance increased significantly,the financial performance has risen in the short term,but has not improved in the long term.In the analysis of the influencing factors,the following two hypotheses are verified:the impact of related mergers and acquisitions on the financial performance of the acquirer is positive,and the impact of cash as the payment method of M&A on the acquirer financial performance is negative.Finally,based on the results of empirical analysis,this paper puts forward some suggestions from the perspective of the acquirer and the government department. |
