The Empirical Study On M&A Performance In The Chinese Pharmaceutical Listed Companies

Merger and acquisition (M&A) is an effective way to rapidly expand the size of the enterprises by absorbing capital, human resource and technology. From a historical perspective, most top multinational pharmaceutical corporations carried out M&A. Owing to the rapid development, the pharmaceutical industry of china now faces serious problems such as integration of resources and asset restructuring. M&A has gained its worldwide popularity nowadays, but in China, Research about the Corporate M&A in the pharmaceutical industries has seldom been done, so the author does a comprehensive study about the M&A performance of the pharmaceutical industry of china.The paper first introduces the theory of M&A and some research methods. Then it describes the current situation about the corporation M&A in the pharmaceutical industry in China, including the background and specific characteristics of the corporation M&A. The paper constructs a evaluation model of long-term acquisition of M&A performance using data envelopment analysis (DEA) method, then making empirical study to available dates. It also analysis the factors that influence the long-term effects of corporation M&A performance. By using methods of statistical testing theory ,The paper shows that there is correlation between the M&A and the improvement of the performance of the listed corporations. Finally, according to empirical analysis, the paper puts forward some suggestions that the policy maker of the industry should encourage the pharmaceutical industry mergers and acquisitions, strengthen the post-merger integration and improve regulations and laws to related field.This papers study has great significance in doing research about Corporation M&A performance in the pharmaceutical industry based on China's specific national conditions, thus providing some recommendations to the policy-maker to enhance the competitiveness of the pharmaceutical industry.