Financial Performance Evaluation Based On DEA And AHP Model

With the deepening of economic globalization, international capital flow rate is accelerated, and M & A has become one of the important forms of investment. The fifth global cross-border M&A wave began in 1990 s, common in developed countries like Europe and the United States. But since the Reform and Opening-up of China, after more than ten years of continuous development, M&A has already become a increasingly common phenomenon in the process of great development of China’s enterprises.The idea of this research is based on the review of the existing domestic and foreign M&A performance research, and build a full-new performance evaluation system of M&A with Data Envelopment Analysis(DEA), Analytic Hierarchy Process(AHP) to study the case.This paper contains five parts. Firstly, the introduction describes the research background, the significance of this paper, and summarizes the research objectives,research ideas, methods and framework briefly; Secondly, take the review of the existing domestic and foreign M&A performance research and make a comparison;Thirdly, establish the M&A performance evaluation system based on DEA and AHP model, analyse the case with it; Fourthly, take research on the case UNIS merged Spreadtrum Communications, including interpreting the background of this case and analyze though the data. Finally, the above analysis is summarized, put forward some suggestions, point out the limitations and the future outlook.The study results will show that:(1) After merging, both the whole efficiency and technical efficiency were improveed, which may result from Spreadtrum technology advantage, but the scale efficiency was declined;(2) The merging drive the business result improved with the development of the whole efficiency and technical efficiency,but 11 months later, the result appeared to drop because of continued downturn of scale efficiency.In this paper, there are two improvments in two aspects:(1) DEA is a statistical analysis method, which is based on a set of input-output datas to estimate the effective production frontier. DEA was seldom used to evaluate the M&A performance, and this paper will apply DEA to build performance evaluation system.(2) The docking of model scheme layer of AHP and output index of DEA. According to the characteristicsof different industries or companies, we set up the input index cluster, and use the correlation analysis to select a variety of financial indicators.In a word, study on the case UNIS merged Spreadtrum Communications has strong realistic and academic meaning.