Internet Enterprise M&A Performance Evaluation Research

M&A has a long history, with technology developing and the industry updating, it changes again and again like the tide surging. As an effective way of resource allocation, M&A for the development of the whole social productivity plays an important role. In the key period of our country building a moderately prosperous society, M&A has become an important way of the development of China's enterprises. Internet companies as the rapid development of emerging industry in China, also has active M&A activity. M&A has played a great role in promoting the development of the whole industry.Based on M&A enterprise behavior theory, M&A can bring value-added. However, because industry is different and their history has many differences, thus affecting their M&A decision factors are also different, resulting in M&A behavior model, eventually lead to different industry M&A value-added effect and the factors affecting the performance of M&A will be different. Wang qian (2011) took 2008 real estate enterprise of Shenzhen and Shanghai securities trading market as an example. She found that using factor analysis method to analyze the common factors that affects the business performance, concluded that "the enterprise profitability, solvency, operating and growth ability is closely related to business performance". Yang Jiayin (2014) analyzed the M&A of cultural industry in our countryl, to come to a conclusion that M&A improve the ability to resist market risk, and horizontal M&A can effectively increase enterprise performance.At home and abroad, the research of factors influencing M&A performance and M&A motivation has been relatively mature. But now, there are few scholars for Internet enterprise M&A performance and strong empirical research. The current related research are directly used traditional M&A performance study method to make the Internet enterprise M&A performance evaluation, without considering the factors that affect the Internet enterprise M&A performance. Wei Liang (2007) studied on January 1, 2000 to October 31,2006 16 listed Internet companies in China what happened all M&A events, a total of 50 samples. Using the average share price analysis, cumulative average yield method, cumulative excess average yield method, he draw the following conclusions:M&A brought value for buy-out firms, but for shareholder value may be damaged, social benefit does not necessarily increase due to Internet enterprise M&A. Wang Xianjie (2014) collected in January 1,2000 to 2011 in China on December 23,22 all Internet companies listed overseas, absorption merger announcement event, mainly using the method of factor analysis and financial indicators to analyze the fabric enterprise performance evaluation. The study found, looked from the overall level, our country Internet enterprise performance is ascending year by year. Therefore my research combining with the characteristics of Internet companies, introducing of non-financial indicators to improve the traditional method of accounting research on M&A performance study, through factor analysis of multiple Internet enterprise M&A events, extracted the common factor to set up the Internet enterprise M&A performance evaluation model, measures the Internet enterprise M&A performance, explored under the different M&A type and payment, what is the difference between Internet enterprise M&A performance. The study found that the Internet enterprise performance has not increased by M&A, but in horizontal M&A and M&A to use cash payment for overall performance is relatively good.