An Empirical Study Of Post M&A Performance Based On Machinery Manufacturing

This study mainly focuses on the acquiring firms’ performance after the M&A transaction. Selected acquiring firms among China listed companies from Machinery Manufacturing M&A events in the year2007as a sample, then collected13financial indicators of each selected firm for the period2006-2010, all financial data for each firm in each year is processed into one general score used for evaluating its performance. Based on this, we comparing the scores between years and also test the difference from following aspects various payment methods, same jurisdiction or not, related transactions or not.By the empirical research, we come to the following conclusion. First of all, same result as other studies, acquiring firms’ performance got no significant change before and after M&A completion. Secondly, with cash payment, the performance decreased first and then increased later. But the performance of stock payment displayed the reverse. Thirdly, in the short term, related transaction let the performance go up while non-related made difference. But in the long term, there’s no significant difference for both. Lastly, companies between same jurisdiction or not also showed no significant difference from the perspectives of short or long term.