Research On The Financial Effect Of Merger And Acquisition

Airline market competition, survival and development have become the most important issue facing the market competitiveness. More and more airlines in order to enhance their overall strength, enhance their market value and the choice of merger integration in this way. Because mergers and acquisitions have a significant economic impact on the airline’s corporate mergers and acquisitions and economic benefits, enhance corporate value have a huge role in promoting, but for the acquirer in a business combination in terms of the financial effects of research is a priority area, so this east on M & A cases for the object, the financial effects of mergers and acquisitions in depth investigation.Financial effect reflected the effect of financing, efficiency and value creation effects effect. Research shows that China Eastern Airlines in Shanghai Airlines merger, resulting in mergers and acquisitions to enhance financial synergies. Among them, the benefit from the effects of profitability and continuing role in the financing effect from financing capacity study and improve the capital structure, value creation is reflected in the M & A business enterprise value realization. These three effects are stronger, the stronger effectiveness of M & A activity, mergers and acquisitions to enhance the financial effects of the larger M & A value creation is higher.