Research On Performance Of Online Tourism With M&A

In recent years, merger and acquisition activities between enterprises areincreasingly active, along with the vigorous development of capital market in China.As an important means of enterprise resource optimization configuration, M&A hashad a significant impact in the development of every industry. As the networktechnology application in tourism industry, online travel companies representedbyCtrip have got great development. At the same time, mergers and acquisitionsactivities between online travel enterprises are very active, which has played a bigrole in the whole development of the tourism industry.This paper is mainly divided into the following several parts. First of all, reviewsrelevant theories and literature of domestic and foreign scholars in mergers andacquisitions motivation and M&A performance, then emphatically analyzes relatedliterature of research on China’s online travel industry. Secondly, summarizes thedevelopment history of online travel industry in China, the structure and the currentsituation of the development of the online travel market. Again analyzes theacquisition environment in China, and then studies M&A behavior of online travelindustry from three angles, which are the status, mode and characteristics of mergersand acquisitions. At last, analyzes the case of Ctrip takeover of Hong Kong wing ontravel, and then makes an empirical analysis of Ctrip’s merger and acquisitionperformance through the Dupont analysis method and the econometric model established.Through research and analysis, this paper draws the following conclusions:firstly, through the case analysis, mergers and acquisitions mode of online travelcompanies in our country is mainly divided into Stock market agreement acquisition,equity joint acquisition, private placement and joint holding. Secondly, under Dupontfinancial analysis, operating performance of Ctrip after M&A Hong Kong wing ontravel did not rise obviously. On the contrary, the net interest rate of the rights andinterests of Ctrip is falling year by year. Then, under the iterative analysis method, thedecline of total assets turnover ratio as well as equity multiplier leads to a drop ofmergers and acquisitions performance. Finally, by building a model to analyze therelationship between company size and company operation performance, we canrecognize that the net interest rate of the rights and interests of Ctrip is positivelyrelated to the fixed assets and negatively related to intangible assets; Basic earningsper share, net interest rate of the rights and interests, and intangible assets arepositively correlated.