A Study Of The Mergers And Acquisitions And Its Post-merger Performances Of China Automobile Industries

With the rapid development of china auto market and the growing competition in the auto industry, the activity of mergers and acquisitions of china auto industries is unprecedented active. However, there is a big difference in the academia as for whether it could really improve enterprise efficiency. So this thesis will make an analysis theoretically and empirically of the mergers and acquisitions and also its post-performances of china auto industries. On one hand, it analyzes the mergers and acquisitions of china auto industries theoretically, and on the other hand, the thesis, based on the financial indicators and the sample of the mergers and acquisitions taking place in 61 automotive listed companies in Shanghai and Shenzhen from 2004 to 2006, will focus on the empirical study of performances of mergers and acquisitions under the theory framework of Factor Analysis. The study indicates that mergers and acquisitions bring to the auto industries short-term benefits but its long term results are unsatisfactory. The main findings also include the reasons for the unsatisfactory performance of mergers and acquisitions which are as follows: firstly, the excessive government intervention; secondly, lack of well-functioning intermediaries and legal system of law; thirdly, the enterprise can not make effective integration after the merger, and so on. At last, the paper proposed some suggestions to improve the performance of mergers and acquisitions of china's auto industries.