Analysis On Performance Of Overseas M&A By Chinese Enterprises

Overseas mergers and acquisitions is an important means to enhance the competitiveness of enterprises. Successful M&A which cross border will help companies take full advantage of the resources and explore the international market, promoting its international strategy. At present, overseas M&A by Chinese enterprises have entered the fast lane, making considerable progress in scale, pattern and operational quality. The transaction volume of mainland Chinese companies in overseas M & A have reached to 272 in 2014, increased by 36% compared with 2013,and transaction value has reached to $56.9 billion. Economic transformation and the powerful support of government has brought good opportunities for Chinese enterprises in overseas M&A. Although overseas M&A by Chinese enterprises have made rapid development undoubtedly in recent years, it does not means overseas M&A always been successful. The actual performance needs specific studies.The evaluation of overseas M & A performance is influenced by complex international and domestic environment, policy, risk, appraisal procedure and other factors. The changing trends are unstable. Given the complexity and long-term of this evaluation, this paper uses data envelopment analytical method to analyze the performance. We can identify the actual effects of overseas M&A and provide reference for the international strategy of enterprises through this way. The first chapter of this paper introduces the background and significance of the study, and describes research strategy, methods, innovations and disadvantages of this thesis. In addition, it makes a literal review from three aspects, including basic theories, different opinions, risks and ways to integrate successfully in M&A. The second chapter shows the basic theories of performance and clarifies major methods to evaluate the performance and introduces its advantages and disadvantages. This article selects data envelopment analysis as the appraisal procedure ultimately by comparing those approaches. The third chapter is the central part of this paper. This section makes the empirical research on the performance of overseas M & A. It makes comprehensive analysis on the basis of annual DEA analysis of DMU(decision making unit), Malmquist index analysis,scale analysis and projection analysis.The empirical results indicate that most enterprises produce good performance after overseas M&A. Besides, the article carried on the comparative analysis by industry. Finally,based on the foregoing findings,chapter four draws the conclusion and puts forward corresponding policy recommendations.