Research On M&A Performance Of Chinese Listed Internet Enterprises

In recent years,China’s Internet industry is growing,Internet enterprises are becoming an important pillar in China’s economic field,and mergers and acquisitions in the Internet industry are also increasing.However,there are many cases of bankruptcy and bankruptcy of the acquired enterprises due to integration failure and other reasons after M&A.Whether M&A can really improve the performance of the acquirer’s enterprises has become a problem.Therefore,a correct evaluation of M&A performance will help enterprises to view M&A rationally.Based on information theory,synergy theory,behavioral finance theory and principal-agent theory,this paper selects Internet enterprises that have been merged in 2018 as samples to study the performance changes of Internet enterprises in the three years before and after the merger.In the short term,study the changes in the market performance of the acquirers of Internet enterprises,and in the long term,study the changes in the financial performance of the acquirers.In the analysis of short-term performance,the event analysis method is used to conduct an empirical analysis of market performance.In the analysis of long-term financial performance,ten financial indicators that can represent Internet enterprises in terms of shareholder profitability,solvency,development ability,profitability and operating ability were selected.First,the propensity score matching method was used to calculate the propensity score of Internet enterprises,and the results were matched to obtain the corresponding treatment group and control group.Then,the factor analysis method is used to calculate the comprehensive scores of the corresponding control group enterprises and the treatment group enterprises,which can be used to represent the M&A performance of enterprises.Finally,based on the panel data obtained from factor analysis,namely,the sample data of Internet enterprises from 2015 to 2021,we use the difference in differences to study the changes in the financial performance of Internet enterprises caused by mergers and acquisitions,so as to obtain relevant research results.The empirical results show that: 1)In the short term after M&A,China’s listed Internet companies’ acquirers have significantly increased their excess cumulative abnormal returns and market performance;2)In the year of M&A,the financial performance of enterprises showed a significant downward trend.In the first year and the second year after M&A,M&A did not produce significant positive effects;However,in the three years after M&A,the financial performance of the enterprise has improved significantly.