Research On The Influence Factors And Impact Mechanism Of M&A Performance Of Blue Focus Corporation

Merger and acquisition(hereinafter referred to as M&A) is an universal business behavior which takes place during the process of enterprises’ capital integration, management and operation. M&A can only be realized under the condition of mutual equality and voluntariness, thus one party shall obtain the other party’s interest in accordance with agreed way.As a GEM board company, Blue Focus responds high P/E ration with high growth, which is rarely seen in GEM board. In 2014, its average P/E ratio reached 51.54 times of its original value. As of 2015 March 31 closing, its net profit compound growth rate reached 97.6%, after the resumption of shares, its price reached 36 yuan, a big leap from the original 4.2 yuan. The total market value of Blue Focus rose from less than billion to 25.5 billion yuan now. Just in several years’ time, Blue Focus has transferred from a medium and small-sized company to an undeniable leader in media subdivision industry, making itself a representative of high price, high P/E ration and high growth company in GEM board. The core driving force behind its growth actually lies in epitaxial acquisitions.This thesis first gives an overview of foreign and domestic studies on M&A practice, through which we are able to have an initial understanding of M&A in current capital market. More importantly, this part also provides guidance in the selection of approaches for studying Influence Factors and Impact Mechanism of M&A Performance of Blue Focus. As theoretical base has been laid, this thesis gives a introduction of Blue Focus and its M&A activities from 2008 to 2014, includes 36 trades and all the data has been collected. Based on the data, this thesis generalizes Blue Focus’ unique experience and issues in M&A. Subsequently, the influencing factors of M&A performance are selected and generalized with the support of research approach and existing data. In a further attempt, this thesis analyzes these influencing factors so as to find out how these factors exert influence on M&A performance. In the analysis, empirical approaches such as event study and accounting research method are employed to analyze external influencing factors while in terms of internal influencing factors, quantitative analysis methods such as correlation analysis and linear regression analysis are adopted. Finally, this thesis uses method of the abnormal earnings analysis, principal component analysis, performance evaluation and cost benefit evaluation method to verify that M&A activities has helped promote the development of Blue Focus.The above conclusions have taken the result of data analysis and the M&A practice of Blue Focus into account, and will help improve the M&A performances of Blue Focus in the future.