The Research Of Motivation And Performance On Listed Company Merger

Listed companies in mergers and acquisitions, from a macro point of view, means the industrial restructuring, the rational allocation of resources; from the microscopic point of view, is the inevitable way for listed companies to survive and develop,the market economy, also an effective way to property change rights system. Mergers and acquisitions of listed companies can revitalize the company’s assets, allocate the production factors rationally, and optimize the product structure, achieve complementary advantages, give full play to the role of economies of scale, thereby enhancing the company’s competitive strength.Firstly, This paper introduces the condition and basic background of Merger&Acquisition on Shanghai Pharmaceutical. Secondly, use the Operating Synergy、Financial Synergy and Managerial Synergy to analysis the cause of Merger&Acquisition. Then using the event study to conduct a comparative analysis of short-term wealth effects and long-term wealth effect of mergers and acquisitions on Shanghai Pharmaceutical, and thus we can know the impact of mergers and acquisitions on the market performance. Followed by use of the consolidated financial indicators to analysis the mergers and acquisitions, according to the transverse and longitudinal comparative analysis on operational capacity、solvency、ability to grow and cash flow capacity, hen we can know the change of financial performance. Through the case study, we know Shanghai Pharmaceutical have obtained the M&A synergies, and shareholders also makes access to the wealth effect, in addition the corporation’s Finance performance has been improved, which was a successful merger cases. It provide a positive reference for the same types of mergers and acquisitions in the future.