Research On Serial M&As Performance Of Haige Communications

With the development and improvement of China's capital market,the quantity and amount of domestic mergers and acquisitions(hereinafter referred to as M&A)market record a new high,with all kinds of enterprises enthusiastically participating in the M&A activities.The relevant data show that,in 2014,China capital market transactions of M&A have amounted 3546,while the scale has reached 9874 billion yuan,increasing by 44.28% and 48.44% respectively when compared with that in 2013.Meanwhile,enterprises in our country tends to complete many M&A events in a short period of time.During 2008 to 2012,listed companies in China finished M&A in the number of 5.29 times or so.Launching a number of M&A events in a short period of time has become a new phenomenon in China.Under this circumstance,studying serial M&A events seems to be more valuable compared with the single-trade ones.So far,scholars have focused on the performance of continuous mergers and acquisitions and the impact factors of performance.Different markets and industries are different in every way,and the M&A situations of each company are different either,so the empirical academic results are different.There is no consistent conclusion.Haige Communications is one of the typical example of enterprises in the continuous M&A events.This company has completed many M&A since its very beginning in the capital market.Haige Communications hopes that she could have continuous and rapid development,improvement of their competitive ability and advanced technical resources through M&A.In this paper,we combine the theory of M&A,domestic studies and foreign studies on the continuous M&A,analyzing the performance of the continuous M&A of Haige.This paper is divided into five parts.The first part is the introduction,which introduces the research background,the significance of the topic,the research content and so on.The second part is related theories the review of studies,mainly on the concept of continuous M&A,the motivations and factors of M&A performance theories.The third part is the introduction of the case and motivation analysis.First of all,we review all the M&A events occurred during 2011 to 2015.Then,we draw conclusions of their motivations,the status of integration and actual outcomes.Finally,we summary the improvement of Haige's M&A ability and risks she is facing.The fourth part is the financial performance of continuous M&A of Haige.At first,we use the event study method to evaluate the short-term performance,taking the company's cumulative abnormal return rate as the benchmark.Then,we use the financial analysis method,EVA method and the principal component analysis method to evaluate the long term performance.The fifth part is the conclusions and suggestions.Through those above-mentioned analysis,this paper finds that the motivations of continuous M&A include the realization of the company's industrial layout strategy,the expansion of the scale,the growth of profits and the pursuit of technical cooperation.In terms of financial performance,the event study analysis tells that in short-term the continuous M&A has brought out the shareholders' wealth effect.When comes to the financial analysis method and principal component analysis method,the company was in decline in 2011,and after that it was rising.Seeing from the whole picture,Haige's serial M&A has a positive effect on the company's profitability,solvency and the ability to grow,but the operating capacity has decreased.EVA analysis shows that it does help the enterprise increase value greatly.