Based On The Panel Data The Analysis On M&A Performance In The Chinese Pharmaceutical Listed Companies

Mergers and acquisitions are used in the modern enterprises as an important way of expansion. Pharmaceutical industry which is the one of the most using mergers and acquisitions belongs to the rising sun industry. With the development of medical market, facing to competition of huge companies, M&A and cluster development of pharmaceutical companies becomes inevitable, so researching Chinese medicine companies’merger and acquisition performance is of a great significance.The main content of the study are as follows:Firstly, based on the analysis of M&A theory and the Chinese pharmaceutical listed companies’M&A performance and reasons, with the Event Study, M&A short-term performance, from2005to2008, can be got. Secondly, because the traditional DEA model can only be used for time series data and cross section data, this paper proposes a non-parametric model (DM&A) which evaluates the medium-term and long-term efficiency of M&A of the listed medical companies based on the panel data. Thirdly, with this model and20samples, I can get the comprehensive efficiency, technical efficiency and scale efficiency of M&A which placed in2005,2008,2007and2008, and analyse the efficiency of one year before M&A, the year in M&A and2years after M&A. At the same time, according to the different factors, the analysis of classification can be got.The result shows that the high short-term performance is brought by M&A. It is concluded through M&A that the medical listed companies the overall comprehensive efficiency of the overall technical efficiency get enhancement. The comprehensive efficiency and the technical efficiency of enterprises which merged firstly is lower. Associated trade and not associated trade have no obvious difference in the comprehensive efficiency and the technical efficiency. The comprehensive efficiency and technical efficiency of big-scale trade is higher and faster than that of small-scale trade. In addition to small-scale M&A revealed a small rise, other scale efficiency is dropping. Based on the mentioned results, I put forward three advices which are encouraging pharmaceutical company reasonable acquisition, improving the management level after the merger, strengthening the connection transaction supervision, making abundant financing merger means and attention before M&A.