Analysis Of Economic Consequences Of Overseas Mergers And Acquisitions

In the last few years,the trend of Chinese enterprises in overseas business development and investment has shown a rapid growth.More and more Chinese leading enterprises are seeking a new way out as "go global" through transnational mergers and acquisitions.Domestic appliance giant enterprise Qingdao Haier Co.,Ltd.has merged the U.S.General Electric appliance company 5.58 billion U.S.dollars.Is it the overseas mergers and acquisitions effective implementation of "go global" strategy? Does it achieve the purpose of mergers and acquisitions? Based on the analysis of the market's response to the merger and acquisition events,this paper uses the event analysis method to calculate the cumulative excess yield,using the financial index method to analyze the changes of the important financial indexes,the market share changes and so on to analyze the economic consequences after the merger and acquisition.The study found that the Haier to achieve the strategic objectives via the overseas mergers and acquisitions,preliminary to achieve the purpose of mergers and acquisitions.In the short period,the announcement of mergers and acquisitions did not increase the shareholders' wealth and income,and investors were not optimistic about the prospects for overseas mergers and acquisitions.In the long term,the capital injection of equity and assets of General Electric appliance Company in the United States will significantly enhance the comprehensive competitiveness of Haier.From the differences of financial indicators,the financial synergy generated after overseas mergers and acquisitions is obvious,Haier will continuous improve their profitability,durable good returns will bring to shareholders,but the management synergy,management needs to be improved.According to the market share,Haier by the United States General Electric appliance companies in the overseas industry status,improve their own international visibility,broaden the sales channels of products,overseas mergers and acquisitions to achieve the sharing of research and development resources,the future of the value of Haier will gradually release.