The Analysis Of Cross-border Mergers And Acquisitions' Performance Evaluation Of Chinese Electronics And Information Industry

In recent years,cross-border mergers and acquisitions become more frequent in China.Meanwhile,the scale and share of cross-border in electronic information industry in China is also rising.Under this background,most of the researches on cross-border mergers and acquisitions are still concerned about the whole country and the whole industries,rarely focus on an specific industry.This paper will focus on the cross-border mergers and acquisitions in the electronic information industry,which will improve the operating performance of the enterprises in the electronic information industry after cross-border mergers and acquisitions,the factors behind the change of business performance,and how to improve the mergers and acquisitions performance of the Enterprises in our country.Firstly,this paper collates the relevant theories and literature of cross-border mergers and acquisitions.On the basis of expounding China's foreign investment and cross-border mergers and acquisitions,this paper introduces the current situation of cross-border mergers and acquisitions in China's electronic information industry.Then this paper selects the sample data of cross-border mergers and acquisitions in the electronic information industry from 2008 to 2014,and through the use of financial performance research methods which is based on 4 factors--the enterprise profitability,operating capacity,solvency and development capacity.In the meanwhile,we calculate the comprehensive performance score of the previous year,the year of merger and acquisition,the year after merger and acquisition,and the two years after the merger and acquisition,and evaluate the performance changes of cross-border mergers and acquisitions in the electronic information industry.The result shows that the performance of cross-border mergers and acquisitions in China's electronic information industry presents a fluctuation that rises first and then falls,also the difference of mean value between the second year after the completion of cross-border mergers and acquisitions and the year of the merger and acquisition is negative.Therefore cross-border mergers and acquisitions of China's electronicinformation industry have not resulted in the improvement of mergers and acquisitions' performance in general.Then the financial impact factors behind the performance change are found through the matching test of the overall sample and the classified sample.The standard of classification is based on whether the long-term performance of the enterprise is promoted before and after cross-border mergers and acquisitions,that is,whether the overall performance score of the enterprise is improved in the second year after the merger and acquisition completed.Therefore,the total sample enterprises can be divided into two categories: the enterprises which the comprehensive performance score rises after merger and acquisition and the enterprises which comprehensive performance score drops after the merger and acquisition.The results show that the main reason for the performance decline is the significant falling in the operating ability and development ability of the enterprise,especially in the profitability.The significant decline in corporate profitability is the main reason for the decline in performance.On the basis of the full text analysis,to provide references and practical guidance for the enterprises in the future for cross-border mergers and acquisitions,suggestions are put forward from the two aspects – the government and enterprises.For enterprises,the suggestions are put forward based on two elements: the strategy design before merger and acquisition and the integration after the merger and acquisition.The strategy design before merger and acquisition includes the motivation of cross-border merger and acquisition,the selection of target enterprises,the design of financing and payment scheme.The integration proposal after merger and acquisition covers the integration of four aspects of management,technology,culture and human resources.For government the policy recommendations are put forward from two aspects: building a good market environment for merger,and acquisition and coordinating with host countries.Finally,after summarizing the research conclusions obtained,this paper looks forward to the future research direction including increasing the case of the unlisted electronic information industry,expanding the capacity of the sample,extending the performance period.What's more,we can quantitative analyze the influence degree of factors such as industry correlation,state-owned shareholding ratio and relative scale of cross-border mergers and acquisitions.