Research On Performance Evaluation Of Merger And Recombination(M&R) In Rail Transportation Equipment Manufacturing Industry

With the rapid development of Chinese market economy,merger and recombination(M&R)has become a very important part of Chinese enterprises' development strategy.Especially in recent years,in the background of a series of political policies such as the deepening of the reform of state-owned enterprises,the strategic concept of "One Belt and One Road" and the implementation of "high-speed rail diplomacy",the M&R activity of rail transit equipment manufacturing industry has become more active.Therefore,researches on China's rail transit equipment manufacturing enterprises' mergers and acquisitions will have a great significance on the development of the industry,creating "new business card" of Chinese manufacturing industry,and the implementation of high-speed rail "go global" strategy.As the two leading enterprises in Chinese rail transit equipment manufacturing industry,M&R between China South Railway(CSR)and China Nouth Railway(CNR)has attained the most attention in related cases.Although Chinese scholars have carried out intensive researches on performance appraisal of M&R case in theory and practice,researches on performance appraisal about rail transportation manufacturing are few.As a result,this paper focused on the case that CSR merged and recombined with CNR,took event study and balanced score card as the main methods to analyze the short and long term performance appraisal.Then through analyzing the possible risk points in the process of M&R,we proposed some corresponding measures that CSR should adopt to take charge of the risk.Firstly,this paper gives introductions about the theory,performance appraisal and the risks of Merger and Recombination.Then,by comparing the advantages and disadvantages of current evaluation methods,making use of these methods,and taking the short term and long term into account,we constructed a comparatively perfect evaluation system of rail transportation equipment manufacturing industry.After that,according to the constructed system,we took example of the case that CSR merged and recombined with CNR,to calculate and analyze the case in short term and long term and ensure whether it can reach "1+1>2".On the basis of performanceappraisal evaluation method,we analyzed the possible risks in M&R and proposed the corresponding measures against the risks.Finally,according to the case mentioned above,we summarized some relevant policies and recommendations on the M&R for the enterprise and government respectively.Our research showed that after CSR merging and recombining with CNR,the total performance appraisal achieved a great improvement.Although in 2016(the first year after the M&R)the enterprise performance appraisal was decreased,owing to the outer factor of industrial depression,we can still determine the M&R case is positive.The above research provides some theory guidance and management inspirations for the enterprises in rail transportation equipment manufacturing industry aiming to evaluate the merger performance appraisal through merger and improve the operating situation,as well as provides a certain reference value for the further deepening reform of state-owned enterprises.