Analysis On The Influence Between Control Transfer Of Shandong Air And The Company Performance

As a means for transforming company equity structure and promoting current capital and resources optimization, acquisition and recombination has always been a topic for the scholars all around the world to discuss and research. Whereas the performance research on this topic is a very much important part of the acquisition and recombination research. In today's maturely developed western capital market, a relatively mature and complete study method and a theory structure on acquisition and recombination have been formed. Compared with western capital market, our national capital market, though established not long ago, has already formed a relatively strong capital operation concept. Moreover, the rapid development of the listed companies, by way of acquisition and recombination, has won unanimous recognition by both theories and practical fields. Focusing on "whether acquisition and recombination have created value for the company", our scholars have conducted a great deal of research, indicating that the acquisition and recombination of listed companies is characteristic of speculation and non-marketization.Under the scenario of economic globalization and with aviation transportation liberalization being the trend of international aviation industry, Chinese civil aviation is now facing approaching global competition, during which the deep conflict of state-owned enterprise background is ever-increasingly obvious. Therefore, it is imperative that Chinese civil aviation join in the fifth of global merging trend with promoting international competition being its aim, strategic acquisition its feature and horizontal acquisition and recombination its mode; and cope with the fierce competition by means of acquisition and recombination, while enlarging capital scale and regulating unfair competition practices for the sake of overall power of civil aviation transportation industry. Performance analysis and research on civil aviation industry after its acquisition and recombination is of far reaching significance. Control transformation, as one of many means of merging and restructuring, accounts for a considerable part of listed company's acquisition and recombination. How is the performance after acquisition and recombination?Based on the context of civil aviation industry development and systematic theory of acquisition and recombination, this paper, taking the cases of CHINA AIRLINE and SHANDONG AIRLINE, discusses the civil aviation industry performance evaluation after acquisition and recombination using EVA (Economic Value Added). By comparing the calculated EVA before and after Shandong Air Control Transfer, we can draw the conclusion that Shandong Air's performance after control transfer has increased dramatically, exceeding the industry level, which further illustrates that control transfer plays a significant part in performance improvement. By the paper study, we want to provide basis and reference as to whether the current acquisition and recombination in civil aviation industry reaches desired effect.