The Empirical Study On The Influence Of Core Competence And Transaction Characteristics On M&A Performance

As a effective means for enterprises to improve competence and realise leap-forward development ,M&A becomes the best choice to exband quickly. However, materials show that the succession rate of corporate M&A keeps very low while they increase steadily in number.The proposition of core competence theory explained the phynomynon above.It maintains that the mutual shift of core competence between two companies is the key factor which decides the succession of corporate M&A. So do M&A activities really support the theory of core competence ?And do the M&A performance of the listed companies really be influenced by core competence?And what other factors influence M&A performance except of core competence? This paper will take empirical reserch to study the relative factors about M&A performance.The paper comprises four chapters. At first the background and thoughts of the research are described in the introduction which also summarizes the foreign and domestic empirical studies of relative issues; Secondly, the paper introduces the theory of Core Competence and corporate M&A ,then the relationship between company's Core competence and efficiency is analyzed based on the relative theory which provides a theoretical basis for the latter empirical research ,then the two methods of performance description are introduced in the last of this chapter. In chapter 3, as the core of the paper, describes the design of empirical research which comprises the hypothysis ,variables and the linear regression. The last chapter, principal component analysis is used to describe the performance, then is the analysis of the trend of the performance and the result of multipie-variable regression.The result of the research suggest that most of the acquiring companies have improved their efficiencies after M&A,but the propotion of positive droped badly after two years later. The proportion of intangible assets play a significent positive influence to M&A performance ,which verified the hypothysis relate to the core competence promoted in the design of reserch .Industrial relatedness, relative size and tradable-share propotion all play significent influnce to M&A performance.