Study On The Performance Of Overseas M & A In Service Industry Under The Sixth Merger Wave

After the financial crisis, the service industry has become the fastest growing areas of overseas M & A taking the place of energy industry. The service industry has become the main force in overseas M & A activity. Parity effect of rising asset prices in Chinese market and overseas depressed asset prices, count for the overseas expansion of financial services industry. Under such background, this paper include a negative demand shock factor to represent the impact of financial crisis, of which we observe the existence of the expected role, in order to make an objective explanation for this phenomenon. Firstly, we measure the performance of overseas M&A with both short-term and long-term aspects, and then we uses the latest data to shows why overseas mergers and acquisitions in the context of the financial crisis diversified in their market performance.This paper use the empirical results of segment service industries (the financial services industry, business services, technology services and producer services) to make analysis of performance measurement and therefore we can make comparison. The results show that the financial services industry was affected by the crisis with the biggest performance fluctuation, at the same time, technology service industry was affected by the crisis with minimum fluctuation. Finally we can see that service industry overseas mergers and acquisitions in the short term showed a negative performance, in the crisis recovery period however was still possible turn to a positive performance.This paper defined how to measure overseas mergers and acquisitions performance, by setting different time window and use empirical data to test results, so that we can compare the real-time volatility of the market value; on the other hand, by using dynamic programming method to get M & A after the profit efficiency and cost efficiency, we can know whether mergers and acquisitions in the service industry promote the technological progress in the long term. On the basis of the improved empirical method explore, evidence showed that overseas mergers and acquisitions in the financial crisis followed demand driven market performance and industry differences, ultimately verify industry difference influence on M & A performance.