The Research On The Performance Of M&A Of Chinese Listed Pharmaceutical Companies

Recent years, there are many M&A activities in the pharmaceutical industry, but because of all kinds of causes domestic pharmaceutical mergers and acquisitions activities are ineffective, many well-known companies are falls because of acquisitions and expanding, for example Sangjiu and Dongsheng. Pharmaceutical enterprises’ M&A activities are prosperity, in large part reflecting the pharmaceutical industry develops well, but also giving enterprise management and rational investment greater challenges. So pharmaceutical enterprises should be how to make acquisitions so that they can become bigger and stronger to face the increasingly fierce competition of globalization, it is the problem that the pharmaceutical industry urgently need to solve. In this paper, make an empirical research of the performance of Chinese pharmaceutical industry’s mergers and acquisitions, analyze the characteristics of mergers and acquisitions in the industry and influencing factors, explore a favorable M&A mode to domestic pharmaceutical companies, and strive to provide valuable reference for the relevant departments.This paper selects the accounting study, make an empirical study of24merger events taking place in pharmaceutical companies in2009-2010, select10financial indicators from four areas of profitability, operational capacity, growth and solvency to build pharmaceutical companies’M&A performance evaluation system, establish a M&A performance evaluation model to get the composite score of M&A performance, and then make a regression to test M&A performance and its influencing factors. The results show that pharmaceutical company’s corporate performance has declined after the merge; Acquirer for the acquisition of state-owned enterprises’ M&A performance was significantly lower than private enterprises; Management shareholding ratio was positively correlated with the M&A performance, but the effect is not significant.Therefore, the government encourages small and medium pharmaceutical companies to expand their size through mergers and acquisitions after the enactment of new medical reform program, simultaneously should be appropriate to intervene. Second, enterprises should also improve the efforts of post-merger integration. The results of this study provide a realistic basis for the pharmaceutical listed companies’ mergers and acquisitions.