Mergers And Acquisitions Evaluation Method Improvement Studies And Empirical Applications

There are kinds of analysis methods for M&A performance appraising, but they have several shortcomings in practice. A further research on M&A performance appraising is important and meaningful because on the one hand, it can provide objective academic guidance, on the other hand, operators would be better prompted due to exactly recognize with their business results.In this article, we analysis all kinds of performance appraising methods, bring forth to Binary Relative Evaluation and make some improvement, then make an Empirical Study with the finance data of Chinese security market in 2002.The improved model is composed of factor analysis and data envelop analysis, in contrast to other methods, it combined the advantages of the two methods above. It can incarnate the differences of objective conditions between swatches, and then access more exactly. In particular, the operators' subjective efforts could be found by this method, in other words, it can measure the manager's performance , which was seldom considered in traditional methods.