The Research Of M&A Performance Of Domestic Listed Corporation In Medical Device Industry In China

Since the1990s, the development of economic globalization,intensified global listed companies making acquisitions. Although ourmergers and acquisitions started late, with the reform and opening uppolicy and China’s participation in WTO, Chinese enterprises’s M&Aactivity reflects the unstoppable trend. Meanwhile, China is rapidlyentering an aging society, the role of therapeutic medical devices andhealth plays a vital role in protecting the health of citizens. China’smedical device industry as a sunrise industry has a wide prospect inrecent years, M&A activity is endless. To achieve the sounddevelopment of the pharmaceutical industry, the effectiveness of themerger can not be ignored, so the medical device industry mergers andacquisitions of listed companies have studied the performance of itspractical significance.In this paper, according to the theoretical foundation-industryconditions-the establishment of Evaluation System-An EmpiricalAnalysis of the idea to study the Chinese medical device industry M&Aperformance of listed companies. Research method of accounting basedon the selected eight listed companies in mergers and acquisitionsoccurred in2009-2011China’s medical device industry as a sample, the empirical analysis using basic descriptive statistics and factor analysis-comparative prior year acquisitions, mergers current, one year after themerger, two years after the merger corporate performance compositescore, draw the following conclusions: Overall, China’s medical deviceindustry and mergers and acquisitions of listed companies relative to theperiod in the year before the merger, which is a decline in performance.But in the second year after the occurrence of the first year of merger andacquisitions occurring after the pharmaceutical industry M&Aperformance of listed companies is a steady upward trend. Therefore, thewhole can be found to improve the overall performance of the acquisitionwill bring a certain degree.Meanwhile, China’s medical device industry after a mergerprofitability and growth capacity is slightly decreased; But companiesoperating capacity increased slightly after the merger on the basis of thesame; corporate solvency behavior occurs due to mergers andacquisitions, which is in constant rise. Thus, while China’s medical devicethrough mergers and acquisitions can bring certain benefits, but M&Aperformance is not very significant. However, due to the limited sample,corporate performance is not a factor in terms of M&A activity and otherfactors affected only by the conclusion is not definitely established, thefuture of China’s listed companies in the medical device industry tointegrate its acquired business will be a long process.Finally, the status quo of China’s medical equipment industry aswell as some of the problems that are reflected in M&A activity,combined with today’s national economic policies and the economicsituation;on the basis of empirical analysis, in order to improve theperformance of mergers and acquisitions,the paper put forward some suggestions and countermeasures for the purpose of enhancing M&Aperformance.