A Study On M&A Performance In Chinese Pharmaceutical Listed Companies

In recent years, with the rapid economic development and the continuous deepening of the market opening, international pharmaceutical companies have poured into China, especially after our accession to the WTO. In order to meet the challenge, domestic pharmaceutical enterprises have jointed hands with each other. Large-scale merger and acquisitions are needed. However, there are still many problems in merger and acquisitions, such as the imperfection of legal system, the high degree governmental intervention and so forth. Therefore, the study on the performance of M&A in Chinese pharmaceutical listed companies is helpful. It can promote the long-term development of pharmaceutical enterprises.The paper is divided into six parts. Firstly, the paper states the background, the significance and the research status at home and abroad and then puts forward a kind of method to do the research and some innovation points. Secondly, the paper outlines the conceptions of both M&A and the performance of M&A. Thirdly, the paper analyses the current situation of the development of Chinese pharmaceutical listed companies and the characteristics and problems of M&A in Chinese pharmaceutical listed companies. Fourthly, the method of factor analysis is used to analyze the performance from the year before M&A to the forth year after M&A. The paper gains that the long-term performance after M&A is increased. Fifthly, the paper uses the method of multiple regression analysis to find the factors which influence the performance of M&A. The paper gets that the cash payment manner, the proportion of floating stock, the largest non state owned shareholder and the relative scale of transaction are all positively correlated with the performance of M&A, while the main business revenue growth is negatively correlated with performance of M&A, and the asset size is negatively correlated with the performance of M&A in the short term, while positively correlated with it in the long term. Finally, on the basis of the problems of Chinese pharmaceutical listed companies and the results of the empirical study, this paper puts forward specific recommendations, in order to improve the performance of M&A and to promote the long-term development of enterprises.