Comparison Research On M&A Performance Of Listed Companies By Bootstrap-DEA Method

We found that the company develop rapidly through M&A, by learning from the financial practice in western developed countries. The western developed countries has gone through large-scale "M&A Waves" five times, therefore western academia has a very extensive and profound research in M&A, forming a relatively comprehensive theoretical system. But the fact is that whether these theoretical results can be applied to developing countries which are suffering economic transformation, academic community have different ideas.By viewing the related literature review at home and abroad, we found that there are abundant research achievements about the company’s M&A performance. But the domestic and foreign scholars on company M&A performance mainly use event study, finance data study, the clinical diagnosis method, questionnaire investigation, and rarely use the DEA model. But the traditional DEA only make spot estimate, ignore the influence of random noise, lead to efficiency evaluation of small sample deviation. Bootstrap-DEA efficiency evaluation method is capable of correcting deviations, and gives confidence interval of efficiency measures, the accuracy of analyzing and comparing M&A performance is higher. At present, the Bootstrap-DEA method is mainly focusing on the efficiency research, and previous research is often just to confirm whether the M&A activity improves the performance of the company, without a comprehensive conclusion comparative analysis.Based on the above research background, the sample period of this paper is 2002-2014, the object is mainly to measure M&A performance of listed companies in 2008.We select the total assets, total cost, total expenses as the input index, select the prime operating revenue, net profit and total liabilities as the input index. At first, we process all the data by efficacy coefficient method, then input them into R software, programming to calculate the Bootstrap-DEA efficiency data of M&A companies and non- M&A companies. We found that their overall performance improved, showing a steady growth trend, indicating that the overall economic situation ran well. But there still exists difference between M&A companies and non- M&A companies, from 2002 to 2007, non-M&A companies’ performance is significantly higher than M&A companies, but from 2009 to 2009, M&A companies’ overall performance increased gradually, exceeded non- M&A companies’ overall performance. This trend showed that M&A activity did improve the overall performance of listed companies. Using non-parametric Mann-Whitney U test methods confirmed that listed companies do exist significant differences before and after M&A, so we suggest the government should take measures to encourage M&A.Divisions of different industries’ comparison, the average performance of 11 industries improved gradually, the performance of mining industry fluctuate most fiercely. Ecological-economic industry increase roughly before and after M&A, the performance surged from 2011. Manufacturing industry increase steadily. Due to the difference between different industries, the company should avoid pursuing synergies blindly, and should respect industry character.Dividing of different ownership structures’ comparison, state-owned company have the worst M&A performance, and performance of the natural person company is best. From the perspective of M&A performance, the increase of M&A performance of state-owned company is the least, corporate company and natural person company present a steady uptrend, keeping a higher level. So the government should fulfill their duties of shareholders right, reduce administrative intervention.Dividing of different restructuring types’ comparison, the three types- share buybacks, debt restructuring, asset replacement- the M&A performance fluctuate most fiercely,is not very stable. The three types- equity transfer, asset stripping, asset acquisition- keep a steady growth trend. The M&A performance of all the six restructuring types improved, it shows that M&A to a certain extent, means M&A activity do improve the overall performance of listed companies...