Study On Diversification In The Merger & Acquisition Of Our Country's Enterprises

It has been long hundred years since the M&A emerged in the West at 1 970s.Thehistory of the M&A in deed is short in China.After reform and open at 1 978,moreand more enterprises in China involved in the M&A,which is believed as an effectiveway to develop diversification quicklN enlarge scale and improve their performance.There are many complex problems need study,which are caused by this phenomenonin terms of economic theory and practice.We put emphasis on the problem of thediversification in M&A in China. Under the pressure of globalization,diversification operation is the imPortantstrategy for enterprises to reinforce their core competitive edge.HoweveL it hasbecomed a new problem in China,which caused by unlimited expansion ofenterprises in China.There are many problems,which are in need of being treated andanswered,such as whether enterprises should update to diversification from singleoperation?How to quicken the process,realize the effectiveness of decrease of riskand scale economy as well?How to adopt the fleet strategy for enterprises,develop inthe reform of organization,and reinforce the competitive edge? Based on the discussion mentioned above,this article researches thediversification in M&A and emphasizes on discovering the relationship betweendiversification strategy and M&A of enterprises from the perspective of association ofboth activities,by introducing the research theory of the both originated from westerndeveloped countries.The article comes to the practical performance which enterprisescarry out diversification in M&A in present circumstance,by analyzing andsummarizing the present situation and kinds of problems existing of the M&A anddiversification in our country,and by sorting our,summing up and analysis these datawhich are collected from the samples of the diversification M&A of the listedenterprises in 200 1.And discovers the reasons why there is gap between themotivation and effect,and lodge some suggestions accordingly. The article inquires into the methods of measurements of diversification as wellas the index system of performance evaluation in the practical performance analyzingof the diversification M&A of the listed enterprises by comparison and analysis theexisted methods of appraising the performance of M&A,and adopts the methods ofresearching finance index systern which can appraising the capacity to earn and debtservice.