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

Since the beginning of the new century,with the advancement of global economic integration,competition among enterprises has become increasingly fierce.To achieve success,capital expansion is the most important and most crucial means.Among the many ways of capital expansion,mergers and acquisitions among enterprises are the fastest way to achieve rapid capital expansion.In recent years,China has entered a critical period of deepening reform,and industrial restructuring has entered the stage of deep water.In this process,enterprises have ushered in an excellent opportunity for rapid development and development,and the emergence of corporate mergers and acquisitions is also increasing.There are many mergers and acquisitions among airlines in these mergers and acquisitions.After entering the “Thirteenth Five-Year” development period,the state's attitude toward mergers and acquisitions was relatively positive.In 2013,the state issued a document that listed manufacturing,especially large-scale manufacturing,as a key industry for mergers and acquisitions.A high proportion,the document reflects the country's efforts to integrate state-owned enterprises.In 2014,the state also formulated and issued the “Opinions on Further Optimizing the Market Environment of Enterprise Mergers and Reorganizations”,clearly proposing to decentralize the activities of mergers and acquisitions,cancel the approval process for activities such as purchase,sale and replacement of important assets,and further reduce the introduction of documents.The cost incurred by the company during the merger and acquisition saves the span time of the merger and acquisition,and further strengthens the advantages of the enterprise after the merger.There are many cases to study mergers and acquisitions.In some cases,mergers and acquisitions can prove the benefits of enterprises,but there are also some cases that prove that the effect of mergers and acquisitions is not good enough to increase the efficiency of enterprises.Therefore,whether mergers and acquisitions can produce good performance for enterprises is an important topic worthy of research.In this paper,the case of Eastern Airlines' acquisition of Shanghai Airlines was studied.The two companies suffered serious losses before the merger.They are not a strong combination of mergers and acquisitions in the traditional sense.Both companies hope to improve efficiency and improve through mergers and acquisitions.The existing environment that is not well managed avoids the risk of delisting and enhances the company's domestic and international competitiveness.This paper introduces the reasons and processes of mergers and acquisitions.On this basis,it conducts an in-depth analysis of the financial and non-financial performance before and after the merger,and explores the reasons for the success of this merger,and gives the enterprises that may occur in the future.,provide a little advice.This paper is divided into five chapters: The first chapter briefly introduces the research background,purpose and significance of this paper,and briefly reviews the relevant research situation at home and abroad.The second chapter explains the related theories of M&A and M&A performance,and introduces several methods to evaluate M&A performance.The third chapter introduces some basic conditions of the acquisition of Shanghai Airlines by Eastern Airlines before the merger,and explains the reasons for the merger and the effect and the process of the merger.The fourth chapter adopts two methods,accounting indicator analysis method and non-financial index analysis method,to analyze the performance of this merger in detail.By consulting the Eastern Airlines' financial report for 10 years,obtaining relevant data,and calculating the indicators for analysis,the four major indicators of Eastern Airlines before and after the merger,namely solvency,operational capability,profitability,anddevelopment capability,were carried out.Specific analysis.At the same time,the three major indicators of non-financial,namely market share,customer satisfaction and flight punctuality rate,were analyzed.The fifth chapter summarizes the enlightenment of other companies through the analysis of this M&A case,and provides some suggestions for other companies to improve M&A performance.