Research On Enterprise Performance Of Cross-industrial M&A And Industrial M&A

Mergers & Acquisitions(M&A)has quickly become an important option for firms’ investment, with its unique advantages in market. Under the condition of continuous business environment and industrial structure adjustment, M&A is selected by so many firms to improve the performance. In this process, the choice on the types of M&A has become one of the important factors that promote M&A performance. Due to the economic environment, the study of cross-industrial M&A and industrial M&A has become a focus of concern.Existing literature analyze manufacturers of cross-industrial M&A and industrial M&A. However, due to the differences in samples and method of the analysis, the conclusions were significantly different. In recent years, China is in a critical period of economic structural adjustment, the internal constraints of manufacturer’s M&A is fundamentally changed. Using financial analysis method, this paper selected M&A events of 109 public companies in 2010 as the research objects. Adding the data of 2009,2011,2012,2013 to factor analysis, it concludes the comprehensive performance score of each year. Then multiple linear regression analysis was carried out on the composite scores. The performance of cross-industrial M&A and industrial M&A were discussed from two aspects. First of all, compare the performance of cross- industrial M&A and industrial M&A from the perspective of the overall. Then, select transaction scale(subject matter the acquirers pay), shares of the largest shareholder, enterprise property(state-owned enterprises and other enterprises, other enterprises mainly including private enterprises, enterprises with foreign capital, etc.), connected transaction, assets of the acquirers as the influential factors on the performance of M&A.Research shows that,in general, the performance of industrial M&A is better than that of cross-industrial M&A. The factors have different roles on them. In cross-industrial M&A, transaction scale, connected transaction, the assets of the acquirers have a significant influence on performance after M&A. In industrial M&A, the enterprise performance is mainly impacted by enterprise property, transaction scale and the assets of the acquirers. Through the analysis and explanation of these factors, this article further summarizes and outlines countermeasures and suggestions for the enterprise to improve the performance of M&A.