An Empirical Study On Listed Companies’ M&A Performance Of Software Industry In China

The human society is changing with the development of information technology. As an integral part of information technology, the software industry has gradually become the focus of the people and the government. The latest data shows that the output value reached nearly3,000billions in2013. The Ministry of Industry and Information Technology published a plan named twelfth five-year development plan of the software and information technology services for the development of the software industry. This plan pointed out the direction to the development of software industry. The software industry penetrated into all parts of life with the development of the economic. It plays an important role in the transformation of the economic development and the adjustment of industrial structure because of its high added value and high-tech level. But there still have some corrupt practices such as small-scale, lack of innovation, problems of management and so on. The software industry which accounted for30%in the information industry in our country accounts for only6%in the global software industry. Such a scale is not enough for such a big country. The software companies need the sufficient funds, advanced talents and the latest technology to achieve sustainable development. A small number of companies can meet the conditions in our country. Most of the software companies used to blindly rely on the endogenous self-accumulation, and never had considered epitaxial development, so the development of the whole software industry was relatively slow. Nowadays, every company pays more attention to the denotative development while strengthening its own epitaxial development. So,more and more industries adopt the way of M&A to obtain resources. However, what will the M&A bring to the software industry in our country? That’s a question for us to research.The study put forward the research background and purpose through analyzing the characteristics of the software enterprises and combining the theory of M&A. Reading and summarizing the related theory laid the foundation theory in the study. This paper would like to learn that whether M&A can bring expected performance to the software companies. The following contents will be concerned.(1) Industry analysis. The results of the current situation of software mergers and acquisitions, and mergers and acquisitions characteristics motivation to help us better explain the empirical findings and relevant responses to the results presented;(2) Data collection. In this paper, the sample are derived from information disclosure of listed companies website, the huge influx of information network and other relevant data from the database and Qing dynasties, the Shenzhen CSMAR GTA database, through the selection of companies for four consecutive years of financial data on M&A performance is analyzed changes;(3) Building the model. In this paper, through the establishment of a comprehensive financial indicators M&A performance evaluation model, using descriptive statistical analysis and factor analysis empirical analysis, selected12financial indicators in corporate solvency, growth, profitability, asset management, in order to reflect the company M&A performance;(4) An Empirical Analysis. This part of the study was based on the established model, the sample data were collected descriptive statistical analysis and factor analysis to calculate the composite score, and the results were analyzed mergers and acquisitions;(5) Summary. Then the author put forward some suggestions and countermeasures based on the result of this study.It is found that:(1) the four-year observation period, corporate mergers and acquisitions occurred in the performance year decline phenomenon, but one year after the acquisition business performance continued to decline, but the second year after the merger, a rebound in business performance, and high performance enterprise value ratio, and the long-term performance of the enterprise to be seen;(2)For the acquisition types, enterprise integration horizontal merger after a period of time, both companies achieve mutual integration, enterprise performance appears to improve; while enterprises vertical mergers, and acquisitions in the year after the merger appears to enhance the performance of the phenomenon of the year with the second year after entering the merger corporate performance decline;(3) merger integration for enterprises to improve acquisition performance is critical. The result of the study is that M&A has a positive impact on the software industry. But this effect isn’t revealed clearly. Therefore, we cannot ignore the post-merger integration. Finally, this study made some recommendations for the software companies to improve the performance according to the research conclusions. Through the synergy of enterprise itself and external forces, the software enterprises will enter the international market rapidly.