Study Of The Influence On The Enterprise Performance Of Vertical Merger

Since reform and opening up, the rapid development of our country enterprise development make the competition between the enterprises, companies began to change the traditional way of self accumulation, through the way of M&A good enterprise to expand the scale of operation, at the same time, also realized through the vertical merger and acquisition form perfect industrial chain, increase the importance of the enterprise performance. With the development of market economy in our country and the continuous improvement of the capital market, and the economic transformation during the 12 th five-year plan, speed up the pace of industrial structure adjustment, is bound to promote the fast development, China’s M&A market and vertical mergers and acquisitions as an important form of mergers and acquisitions in the status of the M&A of Chinese enterprises is more and more significant, and common in automobile, engineering machinery, energy and other industries.Based on market effect theory, efficiency theory and related theory as the basis, WCDL, a typical vertical merger cases for further study, a simple analysis of WCDL two vertical mergers and acquisitions, on the basis of the background and motivation of using event study method and the product market share analysis of vertical mergers and acquisitions market performance, USES financial index analysis method to analyze the vertical merger and acquisition of the company’s long-term financial performance, inspection effects on performance of vertical mergers and acquisitions, and apply the results to the widespread phenomenon of vertical M&A. From the perspective of the result of event study, two vertical mergers and acquisitions all play a role in the capital markets, investors in 2009 M&A is not very bullish on longitudinal, company shareholder wealth increased after decreased first, vertical merger makes the company continue to increase shareholders’ wealth in 2012, the market reaction to the event actively. Comprehensive financial analysis, analysis the performance result of the long vertical mergers and acquisitions, WCDL, the implementation of vertical merger and acquisition to a certain extent, is helpful for the improvement of the company’s financial performance and improve, vertical mergers and acquisitions of financial synergy, management synergy and management coordination effect is obvious, but synergy has not been sustained. From the point of industry comprehensive analysis, vertical M&A market share gradually increase of the company’s products.According to the research, this paper analyses the conclusion, we give the corresponding policy recommendations: from the company level, the company for vertical mergers and acquisitions need to clear the m&a motives, reasonable choose acquisition enterprise; Companies should pay attention to the resources after vertical mergers and acquisitions, management, culture and other aspects of the M&A integration efficiency. From the government level, the government needs to further perfect the capital market, establishing and perfecting the vertical merger regulation and guidance system, intensify from central to local government support.