Research On The Impact Of M&A On The Enterprise Dynamic Competitiveness

With the further development of globalization and the national economies,the competition at home and abroad is becoming more fierce, the topic how to enhance the competitiveness of enterprises in the current economic environment is concerned by theory circle, practice circle, businesses and government. M & A is one of the important ways to make enterprises development and enhance the competitiveness of enterprises. It can make enterprises gain faster development and higher competitive advantage. Because of the fast growth of Chinese economic, the pace of development of enterprises is also increasing day by day, companies need to achieve rapid expansion and growth through mergers and acquisitions. However, not all of the M & A activity can enhance the competitiveness of enterprises, the effect of M & A and degree of influence on the competitiveness of enterprises remains to be verified.The starting point of this paper is to study whether M & A activity could enhance the dynamic competitiveness of enterprise. After reviewing the domestic and foreign research about relationship between M&A and competitive, the paper expounded related theories about M&A and competitive. This paper creates a dynamic competitive evaluation model based on the review of the relevant literature. This paper used86 listed companies in China of the merger and acquisitions events in 2010 as sample to do empirical analysis. Firstly, the paper uses the method of factor analysis to extract the five common factors to evaluate the competitiveness of enterprises. The five common factors are the enterprise input-output situation, the ability of grow in future, scale factor, operating efficiency and debt paying ability. Secondly, by introduction of time weighted, this paper calculates the comprehensive scores of enterprise dynamic competitive to compare the changes of enterprises competitiveness before and after the merger. Finally, this paper analyzes them merger price, merger type, mergers and acquisitions with related party impact on the competitiveness of enterprises with the method of multiple linear regression analysis.The research indicates:(1)The dynamic competitiveness of overall enterprises have a significant change, and the dynamic competitiveness increased at first and decreased afterward;(2)Mergers and acquisitions with related part could not only enhance the competitiveness of enterprises in the short term, but also take a significant influence on increasing the competitiveness of enterprises in the long term;(3)Compared with other mergers types, horizontal merger has significant impact on enhancing the competitiveness of enterprises in a short time.(4)In a merger transaction, reasonable purchase price has a significant relationship with enhancing of enterprises dynamic competitiveness. In addition, this paper puts forward suggestions on the four aspects of the selection of acquisition targets, corporate governance structure、M &A pricing and acquisition strategies.