Chinese Home Appliance Manufacturing Industry M & A Research

After entering WTO, China is being integrated into the world economy increasingly, household electrical appliance manufacturing enterprises have enhanced in adapting to the market economy, long-term, stable operation, strict financial management, long-term research and development, product upgrading, sustained growth, and other aspects, but not ideal. Faced with the erosion of foreign brands and industry profits increasingly diluted, China's household electrical appliance enterprises urgently need to integrate and the expansion of scale. However, in such a time success depends on the speed, China's household electrical appliance enterprises purely on internal expansion to develop and strengthen has already outdated, acquisitions and consolidation has become a bigger and stronger way. Especially the household electrical appliance industries of the capital-intensive features make the merger and reorganization the most innovative vitality of a ring which reflects market efficiency.Observe from the motives for mergers and acquisitions of household electrical appliance industry, the hope is to a large extent through the restructuring of achieving optimal structure to save transaction costs.However, the results are different, some enterprises successfully complete the set targets, and some failed in the integration, causing X-Inefficiency.Many enterprises in the merger have considered tangible cost savings that directly pay the price while they have overlooked the existence of intangible X-Inefficiency. The extend of understanding and using the transaction costs is a key reason why the enterprises have different performances after mergers and acquisitions.Therefore, the papers focus on the costs changes and the reasons after the enterprises'mergers and acquisitions, which reminded appliance manufacturing enterprises in the merger need to think calmly how the merger and acquisition will lead to changes in transaction costs, whether their own organizational structure can support their own mergers and acquisitions, their core competitiveness and the core culture would be able to make quick and efficient merger integration. Through this line of thought, China's household electrical appliance manufacturers can have a right way to the rational acquisition and upgrade the whole industry's international competitiveness.Papers divided into six parts: Introduction Chapter 1 explained the background of the study; the second chapter concluded the theory, which was to make preparations for the later text; the third chapter studied the causes for the acquisition of the China's appliance manufacturing industry from the transaction costs perspective; Chapter 4,the performances of China's household electrical appliance industry merger had been studied from X-Inefficiency perspective in detail; Chapter 5 designed a balance model between transaction costs and X-Inefficiency .Chapter 6 was this paper's conclusions and recommendations.