On Performance Of Agricultural Listed Company’s Merger And Acquisition

As the foundation of Chinese national economy, agriculture is considered as the country’s primary industry. The central government has long been focusing on the "Agriculture, Countryside and Farmer" issues by constantly increasing agricultural incomes, adjusting agricultural structure, and pushing forward the agricultural upgrading. Representing the advanced productive force of Chinese agriculture, agricultural listed company has played an important role in promoting and setting a good example for Chinese agriculture’s economic transition and structural upgrading. Its’healthy and rapid development will exert a great influence on the further structural adjustment of Chinese agriculture, and will help to establish the modern enterprise system within agricultural corporation and to increase Chinese agriculture’s international competitiveness. Merger and acquisition of agricultural listed company is not only a way of resource allocation in market economy, but also a good method for developing listed company continuously under the economic globalization. The essence of merger and acquisition is to integrate resources, and increase or transfer wealth through the transfer and restructuring of business ownership as well as corporate control right. However, merger and acquisition is just like a double-edged sword which would not only help company to get the economy of scale or enlarge its market share, but also devastate enterprise due to debt crisis or less competitiveness. The Chinese government has put forward a series of policies and measures to encourage agricultural listed company to develop bigger and stronger through merger and acquisition. It is of great practical importance to study agricultural listed company’s merger and acquisition performance, because its performance is decisive in keeping Chinese agricultural economy developing healthily, stably and sustainably, and in industry restructuring. Government’s value orientation in making laws and regulations depends on its performance too.This thesis adopt normative research and empirical analysis, comparative analysis and the combination of trend analysis methods of combining, reviews the relevant theories of agricultural listed company’s merger and acquisition performance and xtensive researches at home and abroad based on financial management and merger and acquisition related theoriess, analyzes the current situation of agricultural listed company’s merger and acquisition, and comprehensively evaluates agricultural listed company’s merger and acquisition performance. Further, it discusses Chinese seeds listed company’s merger and acquisition performance, makes an empirical analysis after figuring out the elements influencing agricultural listed company’s merger and acquisition performance. Moreover, it puts forward solutions as well as suggestions on how to improve agricultural listed company’s merger and acquisition performance.Through the research, the following conclusion can be drawn:The first, The evaluation of Chinese agricultural listed company’s operation performance shows that it suffers from such problems as low performance, inability of making sustainable profit, slow growth and even negative growth in prime operating revenue.The second, currently, an increasing number of Chinese agricultural listed companies merge in more diversified ways, which, however, does not result in a better performance as a whole, because the acquirers do not make more profits or develop better. Agricultural listed company’s departing from agriculture is worsening, which reveals its seeking for instant success during the economic transition, and a long-term low profit in Chinese agricultural industry.The third, through the evaluation of agricultural listed company’s merger and acquisition performance, it can be further concluded that its overall performance is far from satisfying. Nor the long-term performance neither short-term performance is lower than non-agricultural listed company, and the long-term performance is worse than the short-term one, which is opposite to the evaluation of non-agricultural listed company’s merger and acquisition performance. The short-term merger and acquisition performance of different types of agricultural listed companies is better than that of the similar types, while the opposite is true for long-term merger and acquisition performance.The fourth, through the factor analysis of agricultural listed company’s merger and acquisition performance, it finds that elements such as merger and acquisition method, share ratio, profit ability, operation ability and growth ability are also correlative to the merger and acquisition performance.In short, currently, it can be concluded that agricultural listed company’s merger and acquisition can not improve its performance. It should develop main industry, cultivate the core competitiveness of enterprises in order to improve its operating capacity, profitability and growth ability. Finally, it puts forward the solutions and suggestions on improving agricultural listed company’s merger and acquisition performance on both macro and micro scales.