The Research On The Relationship Between Organization Capital And M&A Performance Taking The Equipment Manufacturing Industry As A Sample Under Horizontal M&A

Equipment manufacturing industry is the basic industry which provides national economic development and national defense construction with technical equipment.Invigorating the equipment manufacturing industry sets up and carries out the science development view,takes a new road to industrialization,and a strategic measure for achieving the sustainable development of national economy.After more than 50 years of development,the equipment manufacturing industry in our country made remarkable achievements,which has formed a certain level of industrial system,but the ability of independent innovation and international competitiveness for equipment manufacturing industry in our country is weak,what's more,unreasonable industrial structure and so on.The equipment manufacturing industry is a producer services,after the conformity of the combination,aggregation strength of the organization is the key factor to improve enterprise core competitiveness.By having the unique enterprise culture,High organization capital of the company convert the production factors more effectively into business process than its competitors,meanwhile,which build a core competitiveness that is not easy to be copied and form a lasting competitive advantage.Under horizontal mergers and acquisitions,taking the equipment manufacturing industry mergers and acquisitions cases which happened in 2008-2014 as the research sample,the article makes the empirical research about the relationship between organization capital and the performance,what's more,the organizational capital within an enterprise how to affect the performance of firms.The research results show that no matter from the view of enterprise short-term performance,or from the enterprise's long-term performance and long-term performance,high organization capital acquirers can achieve more excess rate of return and return on total assets than low capital acquirers,three years or one year after the acquisition,the higher organization capital can strengthen enterprise asset turnover and reduce the cost of enterprise,namely,after the merger,the acquirers of high organizational capital can reduce the product cost,increase capital investment,achieve higher asset turnover,which also testifiesorganization capital of the acquirer will be able to improve the operating performance.In this paper,the research has a certain guiding significance to the organization of production activities of the enterprise.