The Research On The Influence Of The M&A On Enterprise’ Value Creation

M&A activity has become an important factor in the rapid economic developmentof countries, but M&A activity can also cause a variety of complex issues, since theacquisition does not only affect their own development, he also silently affect a country’seconomic development, political stability, many problems of social development.According to "China M&A Yearbook2010" Data show that in2009a total of1,508mergers and acquisitions occur, the transaction amounted to596.5billion yuan,compared with2008’s total transaction M&A activity has increased slightly, a recordhigh. Therefore, the study of value creation, and what factors affect the value of mergersand acquisitions during the creation of great realistic significance.This paper is divided into five parts. The first part introduces the researchbackground, significance, research methods and innovative paper points. The second partdescribes the theoretical basis of M&A value creation. And raised in this paper on thebasis of previous studies of value creation evaluation methods. The third part is thein-depth explanation of what factors affect the value of mergers and acquisitions to create.This includes related party transactions, belong to the jurisdiction, ownership structure,the net cash flow, ownership concentration. The fourth part is the core of the thesis. First,the application of factor analysis method for the enterprise value of the acquisition is;Secondly, the use of binary Logistic regression model which factors affect M&A valuecreation. Part V describes the conclusions and insufficient thesis.Through these studies, this paper draws the following conclusions: First, thedomestic M&A value creation for research started late, and academic research to createvalue for mergers and acquisitions than in Western countries lag. And fewer people tomergers and acquisitions and corporate value creation together research, which alsomakes the value of mergers and acquisitions to create fewer academic outcomes. Second,domestic scholars acquisition value creation for the evaluation method is quite simple,mostly single financial indicators to evaluate the value creation. Third, through theestablishment of factor analysis model, the study found that after the acquisitionenterprise value has increased to varying degrees enterprises, and in the value of the third year after the merger is the largest increase in magnitude. This also explains, throughmergers and acquisitions activity, size of the business has been expanded, andmanagement ability to get a promotion, cultural resources, and so with varying degrees ofintegration. Fourth, by using binary Logistic regression model,252listed companies in2009occurred empirical study of mergers and acquisitions, the study found: both belongto the jurisdiction of value creation and corporate mergers and acquisitions was asignificant positive correlation, the net cash flow and the value of mergers andacquisitions create a significant negative correlation. Related party transactions,ownership structure, ownership concentration and mergers and acquisitions to createvalue not significantly correlated.