Research On The Motivation And Performance Of Yifan Pharmaceutical's Continuous M&A

With the development of the economy,people's living standards and health care awareness was constantly improving.With the status quo of the aging population and the promotion of national policies such as "two-child policy",China's pharmaceutical enterprises are booming.Facing the fierce market competition and the rapid development of technology,many pharmaceutical enterprises expands the enterprise scale,improves the industrial structure and improves its competitiveness through mergers and acquisitions(M&A).However,whether M&A can improve corporate performance and increase shareholder wealth is a question worthy of in-depth study.Yifan pharmaceutical is a typical enterprise that develops and grows in the way of continuous "epitaxial" M&A.Therefore,this paper selects Yifan pharmaceutical as the research object and evaluates it from the two dimensions of short-term performance and long-term performance.With continuous M&A motivation of Yifan pharmaceutical as the breakthrough point.Firstly,the short-term performance of continuous M&A is evaluated from the perspective of the whole and segment product areas by using the event study method.Secondly,Tobin Q value was used to evaluate the medium-term and long-term market performance of Yifan pharmaceutical.Principal component analysis was used to research the financial performance of continuous M&A,and analyze the driving factors of each principal component.Evaluates the non-financial performance of continuous M&A from the perspective of the market share and innovative research and development capability.Finally,puts forward suggestions for Yifan pharmaceutical.This paper takes the data from 2014 to 2018 as a sample,the research found that the current performance of Yifan pharmaceutical was unsatisfactory when it entered the new field through successive domestic M&A,but the performance began to recover after integration.And then,the successive cross-border M&A did not improve its current performance,but the development of the international market has laid a foundation for the future development.In general,Yifan pharmaceutical upgraded its industrial structure and formed economies of scale through M&A,in the future,it should reduce its financial risks and be cautious about cross-border M&A.