Research On Financial Performance Evaluation Of Luxshare Precision Continuous Mergers And Acquisitions

In recent years,with the increasing pressure of transformation and upgrading of China’s traditional manufacturing industry,mergers and acquisitions have become an important way for some enterprises,especially private enterprises,to achieve leapfrog development.Manufacturing is an important pillar of the national economy,and the country’s prosperity is built on a strong manufacturing foundation.However,most domestic listed companies lack M&A experience,and even some listed companies simply pursue short-term speculative benefits of M&A and restructuring,and there are many cases of failure.China’s manufacturing industry is large but not strong,and there are still many shortcomings in the development process.As an important way for the rapid development of enterprises,continuous mergers and acquisitions play an important role in breaking through key core technologies,expanding the scale of enterprises,and enhancing the competitiveness of enterprises.Since its listing,Luxshare Precision has carried out a number of consecutive mergers and acquisitions,which can be described as the leader in continuous mergers and acquisitions of private enterprises.Therefore,this paper takes Luxshare Precision as the research object to explore the impact of continuous mergers and acquisitions on corporate performanceFirstly,this paper introduces the background,purpose and significance of the research,as well as the research status of continuous M&A financial performance evaluation at home and abroad,and expounds the relevant theories of continuous M&A performance.Using literature research methods,quantitative analysis methods,and comparative analysis methods,we deeply analyze the financial performance of Luxshare Precision.Secondly,on the basis of introducing the motivation and process of continuous M&A of Luxshare Precision,a reasonable window period is determined through the event research method,the excess rate of return and cumulative excess rate of return are calculated,and the short-term performance of continuous M&A is evaluated.The entropy value method and power coefficient method were used to discuss the financial performance of Luxshare Precision continuous mergers and acquisitions,and in the evaluation process,the financial data of Luxshare Precision from 2010 to 2021 were selected for longitudinal comparative analysis,and the evaluation results were obtained.Sixteen domestic enterprises in the same industry that have carried out continuous mergers and acquisitions were selected as the comparative research objects,and their financial data in the past five years were compared and analyzed.Finally,combined with the actual situation of Luxshare Precision Continuous,it is found that Luxshare Precision has problems such as unstable profitability,weak operating capacity,large long-term debt repayment risk,and weakened development ability during the continuous M&A period,and puts forward specific suggestions to improve the performance of Luxshare Precision continuous M&A in view of the above problems,in order to provide certain practical guidance significance for the implementation of continuous M&A activities in the electronics manufacturing industry.