Listing The Company's Foreign M & A Performance Eva Evaluation

Foreign capital M&A has become a hot topic in China. The debate on whether the performance of M&A is good or not has never stopped all over the world, different economist holds different ideas. The relevant studies on the performance of foreign capital M&A in China, however, still lacks enough empirical studies. On the basis of the data in CSMAR, this paper adopt the Economic Value Added (EVA) as a measure to study the performance of foreign capital M&A. The relative contents and results are as following: 1. Firstly, we make a systematical review of the motive theories relevant to the performance of M&A: the motive theory of synergy effect, agency problem theory, hubris hypothesis theory, etc. Secondly, we describe the existed methods (the accounting research method and the event-study methodology) and the results of appraising the performance of M&A. And then we indicate the deficiency of the research. Lastly, using the case study, we analyze the mode of the foreign capital M&A in China. 2. In the empirical paper we select the listed companies, whose foreign capital M&A happened before 2001 as samples, adopt the Economic Value Added (EVA) as the measure to study the performance of foreign capital M&A. The result shows that EVA of our samples has a tendency of going up. The foreign capital M&A leads to performance improvement of the listed companies. The motive theory of synergy effect can interpret the act of the foreign capital M&A. Furthermore, we take the automobile industry as our research object and focus on whether or not the foreign capital M&A can create the value for the listed companies. 3. Take Jiangling motors corporation as an example, we adopt EVA as the measure to study the performance of foreign capital M&A in a long term. Our result shows that EVA of Jiangling corporation increases year by year. The success of foreign capital M&A have made both Ford and Jiangling won. The fifth chapter comes to the conclusion and indicates the deficiency of this paper in the end. We get the result that foreign capital M&A can create value for the listed companies and realize the motive of synergy effect. Both the motive and the mode of foreign capital M&A are relevant with the performance of foreign capital...