| Mergers and acquisitions(M&A)activity is heating up in recent years,thanks to the policy of Nine-Point Guideline on Reform announced by State Council in May,2014,as well as macroeconomic environment.China is involving in a critical period of economic transformation,entity enterprises are facing higher financing costs compared with European and American countries,and therefore the capital environment is under tight liquidity.Under such situation,a growing number of A-share listed companies are leveraging their advantageous status to conduct mergers and acquisitions to obtain new production technologies or resources.At the same time,they can also learn the advanced management experience and integrate the innovative enterprise culture so as to achieve win-win in both industrial capital and financial capital.The development of China’s auto industry has attracted worldwide attention but is still facing the problems of low industrial concentration,lack of core technology and international competitiveness.M&A has therefore become an effective way in the auto and auto parts industry to make these enterprises bigger and stronger under such environment with quick technological progressing and fierce market competition.In recent years,M&A in the auto and auto parts industry has made great progress and the performance result also aroused people’s attention.This paper is classified into seven parts.The first part is the introduction,introducing the background,research methods and the significance.The second part is mainly about the theoretical basis and the literature review.The third part mainly introduces several evaluation methods of M&A performance and related correlation model.The fourth part is the introduction to China’s current auto and auto-parts industries as well as the motivation of M&A.The fifth part is the empirical analysis,with 38 selected M&A events that occurred during 2008 to 2013 in Chinese A-share listed companies of the auto and auto-parts industry.The time span selection is from T-2 to T+2(T refers to the year M&A is conducted),with five years in total till 2015,in order to analyze the performance changes before and after mergers and acquisitions.The article builds a comprehensive score evaluation model by choosing eleven indicators which reflect the growth ability,profitability,debt paying ability,operation ability and per share indicators of the companies with the help of factor analysis in SPSS 24.0.The sixth part analyzes how the enterprise type,equity concentration,M&A type and industries influence the performance of enterprise M&A.The seventh part is the conclusion and suggestion. |
