The Motivation And Effect Analysis Of China PingAn's M&A Of Shanghai Jahwa

Under the circumstance of economic integration and globalization,merger and acquisition(“M&A” for short)becomes the eternal theme of the capital market,which is one of the ways to realize the fast capital gain and attaches more and more attention of enterprises.M&A can promote the consistency of economic policy and the universality of resource allocation,so as to share the superior resources and realize the win-win economy goal of multi parties.The government clearly encourages M&A with the policy that on the basis of public ownership as the dominant role to promote the mutual development of the non-public economy,small and medium-sized enterprises as well as other ownership enterprises.In this case,it further promotes the reform of the state sector and changes the state-owned economic layout to realize the strategic adjustment of state-owned economy.M&A originated in the west and has a history of a hundred of years in the world.With the continuous development of world economy and the continuous infiltration of economic globalization,M&A has experienced its several wave peaks,which whereas promotes the development of world economy and the economic globalization.As far as China is concerned,its economic development starts relatively late until the reform and opening up,which causes the pace of Chinese enterprises' M&A is much slower than the western countries.Influenced by the western M&A wave,dated back in 1997,although our country enterprises' M&A started late,they have experienced several peaks with varying results.Hence,the M&A has become one of the hot spot of academic research in the domestic accounting and financial field.The domestic scholars have done a lot of research in our country enterprises' M&A with different research directions,such as from M&A motivation theoretically and from the empirical research on M&A performance.However,the M&A literature combining with the specific case study is relatively few,which is the reason why it is difficult to understand the specific effects of M&A to enterprises with the comprehensive and intuitive view.Hence,this paper takes Ping An Insurance(Group)Company of China,Ltd(China Ping An for short)'s acquisition of Shanghai Jahwa Corporation(Shanghai Jahwa for short)as a case on the history research and focuses on the motivation of M&A to deeply analyzes the effects after M&A,then summarizes the conclusions and inspirations and puts forward feasible suggestions to promote appropriately to provide some practicalsignificance and reference value for listed and planned listing enterprises.This paper combines the methods of literature research and data analysis,after analyzing and summarizing the related literature on M&A at home and abroad to fully understand of the theories of M&A,then takes China Ping An's M&A of Shanghai Jahwa as example,analyzes in detail the motions and effects of M&A.This paper divides into the below six parts:The first part is the introduction.This paper mainly expounds the research background and meaning,reviews the research literature on M&A motivation and performance to get the representative points,introduces the writing methods and the research methods,as well as builds the basic frame upon.The second part is the theory overview of the M&A.This part firstly overviews M&A from the concept and types,secondly expounds the related theories of M&A,finally analyzes the several evaluation methods of M&A performance,which lays a theoretical basis to the study of China Ping An's M&A of Shanghai Jahwa.The third part introduces the case of China Ping An's M&A of Shanghai Jahwa.This part firstly introduces their basic situation before the M&A briefly,secondly analyzes the background and process of the M&A,finally analyses the characteristics of the case.The fourth part is the concrete analysis of the M&A motivations of China Ping An and Shanghai Jahwa.To China Ping An,it analyzes from diversified management,synergistic effect as well as investment benefit etc.To Shanghai Jahwa,it analyzes from improving competition strength,realizing transformation as well as the national policies etc.The fifth part is the effect analysis of China Ping An's M&A of Shanghai Jahwa.This part mainly analyzes the M&A effect of target enterprise Shanghai jahwa.By reading and making statistics of the related financial official data,it focuses from debt paying ability,operation ability,profit ability,growth ability and dupont analysis to makes comparative analysis before and after the M&A of Shanghai jahwa,And it chooses the typical enterprises in the same industry to do the transverse comparison,and combines with non-financial indicators for supplementary analysis.In addition,from the perspective of stock market and target realization,this paper briefly analyzes the impact of the M&A on China Ping An,and briefly explains the reasons for the post-merger performance of Shanghai jahwa.The sixth part is the conclusions and inspirations of China Ping An's acquisition ofShanghai jahwa.On the basis of the above analysis,this part concludes that in the process of M&A,both parties have successfully realized the mutual benefit.From the perspective of M&A effect,both parties have achieved the expected M&A performance.After the M&A,both parties need to improve the integration.On this basis,several inspirations are made as follow: clarify the strategic opportunity and M&A timing,select the interested enterprises reasonably,do due diligences,achieve risk management,as well as focus on resource integration to achieve M&A goals.