A Study On The Performance Of Mergers And Acquisitions Of Chinese Listed Auto Companies

M & A is a process of optimization on the allocation of resources which is also an important way of company business growth. With the continuous development of market-oriented economy in recent years, Company M&A action has become a trend of co-development module. By merging the assets and re-structuring to enable companies to archive the maximum business margin. Also by this way which enable company to better their business performance, expand their operation scale and lower the average cost that can ensure the company to realize the "Synergy", namely the theory of "1+1>2". How to effectively break down and evaluate the performance of listed companies'M&A; what are the affecting factors the M&A introduced; and what kind of actions shall be taken based on those factors that can effectively improve the business performance which has already become of an importance practical significance.This thesis is studying on this subject from the aspect of empirical and theoretical. The way of indicator measurement from the financial method will be applied to analyze the M&A on the performance of mergers and acquisitions of Chinese Listed Auto Companies. A study specimen is quoted as the M&A action from auto industry from the year of 2005-2008. In order to reflect the comprehensive ability of selected companies, twelve financial indicators are selected to analysis the Listed Company performance with a composite score model,then evaluate the M&A changes in composite scores before and after by certain technology. This would then suggest the trend of M&A performance. In order to investigate on a long-term M&A impact, the thesis is going to define the period of time as one year before M&A and two years after.Through empirical research the following statement can be concluded:1st, through the implementation of M&A action, the overall performance is changing which is increasing and then going to decrease.2nd, Big variation of M&A performance occurs due to different types of financial indications. Overall, the impact is working greater on the profitability capability, development ability and the ability of cash flow, operational capacity, and working weaker on operational capability and solvency. In this thesis, it's also going to make study on these factors and propose some suggestions.