Research On M&A Performance Of Science And Technology Listed Companies

Science and technology listed companies are carrying out Merger and Acquisition (M&A) like a raging fire. Whether M&A can improve performance effectively or not has caused by the enterprise stakeholders concerns. The thesis inspects the performance of science and technology listed companies during the M&A years and the impact of M&A performance related factors by empirical study.Firstly, this thesis reviews the general theory of M&A and previous related research, and analyzes the M&A status quo of science and technology listed companies. Secondly, this thesis takes financial ratio analysis to research on M&A performance. It takes science and technology listed companies as the samples that have experienced M&A in 2005, selects twelve financial indexes to evaluate the performance of M&A, then sets up a general scoring model of M&A performance by analyzing factors. Through comparing and testing the performance score of M&A, it inspects the four years performance of overall sample and classified sample. Thirdly, this thesis analyzes the factor of M&A performance of science and technology listed companies, such as industry relevance, whether related party transactions or not, ownership structure, executives and hold shares, the relative size of M&A and the main business growth.The research shows following conclusion: M&A performance of science and technology listed companies improve at the first, but descent subsequently. Science and technology listed companies, to some extent, improve their operating performance after M&A, but the results are not significant. The main business growth and executives share are the most significant factors, followed by ownership structure. The more growth of main business, the better performance of M&A. The incentive for senior management is valid only in the short term. The first major shareholder ratio and M&A performance is direct ratio, and percentage of state-owned shares and M&A performance is inverse ratio. The companies whose first shareholder is state have a better performance in short-term. The performance of industry-related M&A is superior to non-related industries M&A. In short-term, the performance of the relating M&A is superior to the irrelating M&A. The modest scale M&A have a better performance. Finally, this thesis gives some countermeasures to improve the M&A performance of science and technology listed companies from the enterprise itself and the external environment, and provides reference for M&A activities of science and technology listed companies.