Jin Xinnong's Case Study Of Merger Performance

M&A is an effective means to achieve the expansion of the scale of enterprises,access to economic cooperation,improve market competitiveness,from the perspective of a market economy,mergers and acquisitions reflects the market survival of the fittest,the rule of survival of the fittest,is one of the important ways to the effective allocation of social resources.However,not all companies choose mergers and acquisitions will be successful,successful mergers and acquisitions can achieve social and economic benefits to the enterprise,the failure of mergers and acquisitions will cause damage to the value of the enterprise,a waste of social resources.To evaluate the efficiency of merger,is an important way to examine a corporate mergers and acquisitions activity success,many domestic and foreign experts and scholars on the mergers and acquisitions activities can improve the performance of listed companies conducted research.Because of the different methods and angles of M&a performance,there is no unified conclusion on the performance of M&A to date.In fact,each industry has different particularity and other industries,so the impact of M&A on performance is inconsistent.In the current feed enterprise merger and acquisition activity active situation,this paper mainly adopts the event study method and financial analysis method based on the analysis of Jin Xinnong with a series of the mergers and acquisitions performance,mainly on two aspects,the impact of mergers and acquisitions on Shareholder Wealth:the merger will need time to reflect the effect,so in terms of shareholder wealth only to short-term performance analysis,based on the construction of the window period of cumulative abnormal returns were calculated and analyzed the market model.The impact of mergers and acquisitions on financial performance:Analysis of these four abilities through the combination of horizontal and vertical comparison phase on the profitability and development capacity,solvency,operating capacity,and using DuPont analysis to analyze the financial performance of mergers and acquisitions Jin Xinnong.The results show that,from the perspective of shareholder wealth,through the establishment of market model of six merger event window period cumulative abnormal return rate calculation,the six merger that Jin Xinnong gained an average cumulative abnormal return of 19.05%,showing the overall positive market performance trend.From the financial point of view,performance of the trend in the study period first decreased and then increased,this is because these mergers need time to integrate,the effect also need time to reflect,four capacity indicators have increased,so the influence of Jin Xinnong's acquisition of performance is positive.At the same time,this paper analyzes the factors that affect the performance of mergers and acquisitions,including the development of the industry,the motivation of M&A and so on.At the end of this paper summarizes the Jin Xinnong merger brought us some enlightenment and reference,including careful selection of target,choose the best timing,do the preliminary investigation,strengthen risk awareness,clear motivation and conform to the development of the industry.