The Empirical Research Of M&A's Impact On Performance Of Manufacturing-listed Companies

In this period within which Chinese economic structure have to adjust and optimize, the manufacturing industry, as one of the country's economic pillar industries, also have to upgrade and reconstruct, for which merger and acquisition is the major approach. Therefore, more and more attentions have been focused on the M&A of enterprises of manufacturing industry. Domestic and overseas researches hasn't come to an agreement on whether M&A could improvement producing efficiency and performance of enterprises of manufacturing industry, and which factors could and how to influence the M&A performance. However, researching this subject is of great guiding significance. Thus this paper chooses the subject mentioned above as the study topic, to supplement and enrich researches in the field.This paper, according to certain criterion, selects 75 listed companies which happened M&A events since 2009 to 2011 in manufacturing industry as samples, and uses DEA Super-efficiency model to calculate the sample companies' performance before and after the M&A. According to the category of subject matter, whether the M&A belongs to the related transactions, whether the transaction's parties are of correlated industries and the payment, this paper classifies samples. Then this paper analyzes how the M&A impact on performance of overall samples and each classified sample. And this paper uses Matching T Test to find out whether the impact of M&A is significant. As to classified samples, this paper also tests whether the features of M&A could influence the performance significantly by Mann Whitney U test. At last,this paper selects the sample companies' total assets, tangible assets ratio, income tax ratio, the growth rate of main business revenue, the percentage of three expenses of main business income, and asset-liability ratio as explaining variables, the company performance before and after the M&A as explained variable, and use the fixed effects panel model to examine how the micro factors of enterprises influence performance of the company.The empirical research of this thesis indicates that the M&A transactions of thesample companies will reduce both their short-term performance and long-term one;especially for the latter, the reduction is striking. As for the influence from the M&A event feature on the M&A performance, the conclusions of this thesis demonstrate that the short-term performance of the M&A whose object is the whole equities or assets is better than one whose object is partial equities or assets, and the integrity of the object has a significant impact on the M&A performance; that the performance of non-related transactions is inferior to that of affiliated transactions, and the relevancy characteristics produce an prominent effect on M&A long-term performance; that the short-term performance of the vertical M&A is superior to that of horizontal M&A or compound M&A, though the correlation between the industries of the both sides of the M&A has no significant effect on its performance; and that the short-term performance of the M&A paid in stock is superior to one of the M&A paid in cash,and M&A performance is greatly affected by payment methods. As for the influence from the company's Micro-influencing factors on the M&A performance, the conclusions of this thesis demonstrate that the sample companies' ratio of the tangible assets, tax burden, assets-liability ratio are positively associated with the company's performance values; its level of the costs is negatively associated with the values; and there is no significant correlation between the total scale of company's assets and its performance, or between the growth rate of the company's main business incomes and its performance. Finally, based on these conclusions, advises for M&A of manufacturing enterprises are presented.