Study Of Investment Efficiency Based On DEA In China’s Listed Enterprises In Power Industry With Merger&Acquisitions

As the most important part of factors that promote China’s economy, investment is obviously important to China’s economic and society. On the one hand, investment plays an important role in optimizing the economic output and capital allocation, on the other hand, the investment behavior plays an essential role in enterprise value realization. So studying investment efficiency is helpful for the enterprises to analysis and makes investment decisions.Since2000, with the strategic adjustment of economic structure, enterprises adopt a multi-way to optimize allocation of resources. In this process, as the most important strategic, mergers&acquisitions play a very important role in enterprise’s value realization. Mergers&Acquisitions is an investment behavior for the acquirer. Since the securities market started late, a variety of policies and systems are inadequate, the development of mergers and acquisitions has been relatively rough. But nowadays, with the development of economy market and the stock market norms, Mergers&Acquisitions cannot be ignored in the enterprise’s industrial expansion, structural optimization, and capital intensive and so on.At present, the research of Mergers&Acquisitions and investment efficiency in foreign countries has been mature, but the study in the correlation between mergers&acquisitions and investment efficiency is still rare. Mergers&acquisitions will influence the long-term development ability, so it is of significance to study the correlation between Mergers&Acquisitions and investment efficiency.Based on current situation of capital market in China, this thesis focuses on the Power industry companies which had occurred Mergers&Acquisitions during2007-2011, and analyses the relationship between investment efficiency and Mergers&Acquisitions by using the non-parametric envelopment analysis. This thesis aims to provide recommendations to listed companies in Shanghai Stock Exchange and the Shenzhen Stock Exchange.Through the research, we draw the following conclusions:(1) investment efficiency of China’s power industry enterprises keeps growing in2007to2011; the relative efficiency is still high, which indicates a higher level of investment;(2) the scale efficiency is the most important factor that affects the investment efficiency of China’s power industry enterprises;(3) the merger&reorganization of enterprises have a positive impact on investment efficiency.