Research Financial Effect Of The Mergers And Acquisitions Of CIFA For Zoomlion

With the rapid economy development and the globalization layout of China, the awareness of expanding business scale from numerous domestic enterprises is becoming stronger.And the merge was regarded as of a favorable manner through the investigation for various expanding ways. Since China joining the WTO, a large number of companies with expanded scale were constructed during the wave of mergers and acquisitions. However, the business scale of company does not mean the favorable financial effect, and financial effect is a significant factor for assessing the enterprise value. Thus, it is essential for researching the relationship between the merge of listed company and the financial effect.This paper selected Zoomlion CIFA this classic case of mergers and acquisitions, both in the short and long-term perspective of the changes brought to the merger Zoomlion financial effects, and this paper is consisted of six parts. The first part reviews the current research status, the research background and significance are introduced, the research content and the methodology are listed. The second part, the theoretical system of merge, acquisitions and financial effect is introduced.and third part is case study area, the Zoomlion’s CIFA merger as a case to analysis the relevance of financial effect and merger. The forth part is the research on questions and the fifth part is the solutions. The sixth part concludes the conclusion and inspired obtained by this study.According to the analysis, t Mergers and acquisitions to bring only short-term financial effect, did not result in significant long-term financial effects. And zoomlion’s performance on multiplier effect of the stock, profitability, reasonable tax effects worse than general listed companies. After the paper also analyzes the causes and proposed solutions strategy.