Research On M&As Of Chinese Listed Hospitality Industry

The studies about M&A,which is short for 'Mergers and Acquisition',could be traced back to 1960s.As for the hospitality industry,tons of M&As happened these years,while references related are rare.Hospitality industry has its own financial character,which leads to unique distributions of M&A types,motivations,payment methods,market reaction and financial performance.And these patterns could not be figured out using whole industries samples.Therefore,this dissertation is aiming at exploring some issues of hospitality industries M&As.The 11 hospitality enterprises are studying objects and 144 M&A events are research samples to explore the types,motivations,patterns of payment,performance and reaction of capital market of M&As,which happen in Chinese hospitality industry,via plenty methodologies such as descriptive method,event study and operating cash flow to total assets method.According to the results,it is likely that the M&A motivation of Chinese listed hotels and restaurants is strategic,which is aiming at redistribution of resources and multi-developments;while the cash is the frequently used as M&A payment because enterprises are targeting at delivering the signal that merger companies' values are underestimated and strengthening investors' ambitions;and acquiring and peeling off are two typical types in this industry to acquire cashflow.Apparently,the descriptive analysis shows us that decision makers want to help investors acquire more fortune and lead the companies to a bright future..However,after analysis,it is obvious that M&As do not help that much in terms of corporation performance and reaction of capital market via operating cash flow to total assets method and event study.In general,either corporation performance or capital market reaction of Chinese hospitality industry cannot profit from M&As.As for the social meaning,political stipulations like "Three Public Expenses Policy"and "515 Strategy" are published,which makes hospitality industry M&As happen more often and become a significant method of expansion.However,M&As cannot bring profits to hospitality companies both in market reaction and financial performance.Therefore,this dissertation suggests that Chinese hospitality industry should recognize M&As rationally rather than merger blindly.