M&A Performance Evaluation Of Listed Companies In China's Retail Industry

Department store retailing business is the most importment industry which isbeneficial to the people's livelihood. According to incomplete statistics, China has thelargest and the fastest growing retail market of the world. Retail industry is not onlyrelated to the upstream industry products, but also closely linked with the forefront of themarket. What's more, it deeps into each people's family and life. With the promotion ofworld economic globalization, the world industrial structure is faced with the new roundadjustment and upgrading. In order to further expand the market, determine the leadingposition in its industry and realize the optimal allocation of global resources, the worldgiants of the retail industry raise the merging and acquisition tide continually.In our country, a lot of retail industry mergers and acquisitions have exactly broughtenterprise what kind of effect, weather have improved the performance of enterprises andcreated value. These have become we need to seriously think about. The research of thisscientific problem has long been the focus of the domestic academic circles. However, dueto the different research methods used by scholars, the selection of sample and theconstructing of index system are different, leading to the empirical results are notconsistent which are brought by industry M&A.This paper surrounds the center of M&A performance, that is, value creation, studiesits related theory, reviews and commentaries the research of domestic and foreign M&Aempirical. And then, China's retail industry mergers and acquisitions are analyzed. On thebasis of these studies, we combined with the specific cases of our retail industry mergersand acquisitions of listed companies. Selected samples of M&A events that happened inlisted department store retailing companies of China in2008and2009, based onaccounting research methods, selected typical aspects of financial indicators, and in theconstruction of index system, using factor analysis method to establish the comprehensiveevaluation system of companies' M&A performance. Finally, the paper proposed someadvice of improving China's retail listed companies' mergers and acquisitions.