The Empirical Research On Performance Of M&A In The Industrial Robot Industry Of A-share Listed Companies

M&A is a typical way of improving the financial performance of public listed companies,especial under the circumstance of CSRC putting more and more emphasis on the delisting system.In recent years,more and more public companies are seeking growth from outside,by acquiring assets using cash or stocks.Short after the state council issuing “Made in China(2025)”,industrial robot had been a hot area for public companies seeking M&A opportunities.In 2015 and 2016,multiple public companies within A share market had completed M&As in the area of industrial robot,while whether these M&As truly improved the financial performance of the acquiring public companies remained unknown and therefore this topic would be mainly discussed in the following article.The first part of the article mainly talks about the background and meaning of M&A,including concepts,motivation and theories.After that is my introduction,understanding and business analysis on the industrial robot industry.Then we mainly discussed the recent 93 industrial robot M&A cases happened between 2010 and 2015,tried to find whether these M&A would be beneficial for the acquirer.On the capital gain aspect,we found that these M&As would help the acquirer to obtain more than 1.4% cumulative abnormal return 3 days among the deal announcement(CAR3).Further,by running regression,we found that CAR3 was positively related to the equity proportion of target company and negatively related to the revenue growth rate prior to deal announcement.On the financial performance aspect,we found that these M&As would be beneficial for the acquirer in terms of net profit growth rate,revenue growth rate and gross margin,knowing that these factors turned better the year after M&A compared to the year before M&A.By running regression,we found that the change of revenue growth rate was positively related to the M&A deal size and negatively related to the equity proportion of the target.The industrial robot has been a key M&A area after the state council issuing the “Made in China(2025)”,by conducting statistical tests on financial performance before and after the M&A along with empirical case studies,this article provides a thorough introduction on the industrial robot M&A cases happened in recent years and I believe the article will be beneficial for the potential upcoming M&As in the area of industrial robot industry.