A Study On The Performance Of Merges And Acquisitions Of Listed Pharmaceutical Companies In China

With the continuous development of the economy, Merger and acquisition activities increase. It has become an important way for enterprises to enhance their core competitiveness. The market share is also raised at the same time. As a result, pharmaceutical industry has focused on merger and acquisition these years. Certainly, the state’s political support in the industry also made a great contribution. However, there is few research from this aspect. At the same time, former analysis has a shortage which neglected the difference of short run and long run. What’s more, the distinguish of multiple elements’ impact on performance can be supplemented. Based on what is above, this research is going to analyze merger and acquisition performance of the Listed Companies of pharmaceutical industry in China.Firstly, this paper is going to introduce the study background, the importance, and the methodology of the research based on the recent condition of listed companies pharmaceutical industry in China. Next, we are going to summarize the research by domestic and foreign scholars. Event study method, financial index method and other methods will be introduced when summarizing. Then, Based on the financial data from 2008 to 2013, we researched the features successful M&As have through the angles of short run and long run. Companies performance is our standard and transaction among affiliated enterprises, industrial relevance are our parameter. Finally, according to the results of this study and current situation of the development of pharmaceutical industry of listing Corporation in China, I put forward the policy to better the listing Corporation merger and acquisition performance of Chinese medicine industry.Our conclusions include:(1) From short run, M&A cannot improve enterprises’performance.(2) During a short run, M&A transaction among affiliated enterprises makes stock value lose. Corporations at a premium or in the same province can not make revenue higher, and non state-held stocks lose value.(3) In long run, M&A among the same industry and the same province, or of high value premium will result in better performance. M&A among affiliated enterprises doesn’t play a positive role for the pharmaceutical enterprises. Enterprises with state-held stocks are not sensitive for M&A.(4) In long run, M&A doesn’t help for performance improve in this industry.