Empirical Research On Combination Accounting Method Impact On The Listed Companies’ Merger Performance

The enterprise is the economic basis for development, and it’s the driving force topromote economic progress. Whether a company can grow and develop in the newmarket economy in China, has become critical to promote economic. With the large-scaleadjustment of industrial structure and economic globalization, the business combinationhas become the new trend of today’s economic development. As a result, the accountingtreatment of the business combination will become increasingly important. Differentmerger approach, for Measuring the profitability of the enterprise, debt service as well asthe development of a company, all have a significant impact. Study combined accountingtreatment, has a very important practical significance to improve business performanceand achieve the optimal allocation of resources。The accounting treatment of business combinations has been one of the focus ofaccounting profession at home and abroad，International Accounting Standards Board,the U.S. Accounting Standards Board has repeatedly modify the business combinationcriteria. In the early21st century, when U.S. GAAP and International AccountingStandards have been canceled pooling of interest method, used purchasing method todeal business combination. My country ‘s2006merger guidelines,distinguish the samecontrol and unsame control, Proposed the pooling of interest method and the purchasemethod to deal business combinations. Why China and the international have differentmethod to deal business combinations? Pooling of interest method with the purchasemethod of accounting treatment different, And what impact to business performance?Based on these issues, this article begins with the business combination accountingtreatment, study the impact of the merger performance, using empirical methods toanalyze the link between the two, to further explore the business combination accountingtreatment of future developments in our country.In this paper, begins form the differences, of purchase method and pooling ofinterest method to practice accounting treatment,analysis the differences in accountingtreatment between the two, as well as the financial impact to the enterprise, CombiningChina’s listed companies merger case, use empirical research, to analyze the impact of abusiness combination. Selected Shanghai and Shenzhen combined behavior (in2008) as the study sample,established financial indicators system, to research corporateperformance changes before and after the merger. Financial evaluation index system iscreated using principal component analysis method,In a number of indicators, selectedsuitable indicators for the evaluation system.Calculate the score of the merger year,before and after the year’s performance. Analysis different performance of the purchasemethod and pooling of interest method.Through theoretical analysis and empirical research, this paper has the followingconclusions: Merger itself help to improve business performance, but the merger underthe purchase method achieved declining business performance, and has largerfluctuations; Contrasting the pooling of interest method achieve a clear improvement inbusiness performance in the short term, the performance after the merger has been raised.In fact, the pooling of interest method is also widely popular in practice, but with thebehavior of business combination wore Market-oriented and wore fair, still using thepooling of interest method would be ill conceived. In order to prevent distortion ofaccounting information, It is necessary to cancel the pooling of interest method.anduniform application of the purchase method to deal business combination transaction.Business combination accounting treatment in China will go an internationalconvergence road.