The Research On The Marger And Acquisition Performance Evaluation Of China Automobile Industry

The development of the auto industry reflects a country and the local's comprehensive competitiveness. Since the 21st century, China's auto industry has a booming development. It has an increasing influence on the national economy and social development. Along with the national auto industry policy appearing, more and more car companies join the acquisitions ranks. They want to realize the improvement of enterprise performance and the profession competitive power through the way of mergers and acquisitions. But the hot issue of the theoretical research is that whether the merger could realize M&A or target enterprise's idea. Various scholars also have not reached unified conclusion on it. Therefore, researching on the merger and acquisition performance of China automobile industry has important theoretical and practical significance. This paper's writing idea is based on the theoretical analysis-constructing evaluation system-empirical analysis-providing suggestion. Firstly summarize the domestic and foreign scholars' research results about the M&A performance, analyze the characteristics of automobile industry mergers, and then construct the performance evaluation model. Based on financial index, this paper selects listed companies which have happened acquisition from 2002 to 2006 as samples. The empirical analysis is using factor analysis method, through comparing the M&A comprehensive score of enterprise performance before and after. It concluded that the total score of the listed companies in the first year after the merger had no significant increase. It reached a peak and rose tremendously in the second year after the merger. It explained that the listed company comprehensive ability has been improved, and mergers &acquisitions have significant influences to companies'performance. But in the third year, the companies'performance was easing. It explained that enterprise's subsequent integration work need to get more attention. In addition, the government departments should reduce the intervention of M&A, and make enterprise merger regression rational. Auto enterprises in M&A, also should pay attention to the analysis before the acquisition, control risk in the merger process, reduce the blindness of M&A. They should carry out effective integration in various aspects, such as finance, culture, human resources, assets and technology, thus realize the idea of improving its acquisition performance and strengthening the enterprise.