The Empirical Research Of M&A Synergy Effect Of Listed Pharmaceutical Companies In Our Country

In recent years, the pharmaceutical industry is one of the most active industries which M&A happened frequently, for the empirical research of synergistic effect after M&A of the pharmaceutical listed companies, have strong theoretical as well as the guidance for practice, during the current time background.This article expounds the basic theories firstly, including the definition and explanation of M&A, synergies, event analysis, financial indicators analysis etc. Then reviews the research achievements of M&A synergy effect both Chinese and abroad.Then the paper describe the current situation of pharmaceutical M&A of listed companies in China. Also, analyzes driving factors of M&A from perspective of macroscopic, policy, industry and valuation.The core part of this paper is the empirical paragraph, which select a total of 35 medical merger cases occurred during year 2000-2012, pharmaceutical listed companies as the purchasers, successful, non-affiliated transactions,disclose the trading amount more than 100 million yuan. Based on this data, we calculate the cumulative average abnormal return(CAR) of 10 days near the M&A news announcement day, using event analysis method, the conclusion shows that M&A events improved the company's performance. And this is from a short-term perspective, then from a long-term perspective, we compare the change of long-term performance comprehensive score, by studying a series of financial index system, using factor analysis method. The conclusion shows that M&A events play a positive role on the company's long-term performance. Alao create a positive return in the long term for shareholders of listed companies, which means bring the positive synergistic effect. Finally this paper also adopts the multiple regression method to analyze the reasons of M&A performance composite scores change. Regression results show that the proportion of institutional ownership, the CSI300 index range are the most important positive related factors, and the purchase price/value ratio is the main negative factors.From what has been discussed above, this paper use the event analysis method, financial indicators analysis method and multiple regression method, discuss the M&A synergy effect of 35 pharmaceutical listed company, which M&A events happened during year 2000 to 2012, comprehensively.