| With the accelerating globalization of the world economy,cross-border mergers and acquisitions is becoming an important approach for enterprises regarding market development,scale expansion and transformation and upgrading.With the promotion of "One Belt One Road" in China,the numbers and the scales of cross-border mergers and acquisitions of Chinese enterprises has increased dramatically in recent years.In order to grasp opportunities and achieve the enterprise strategy,some enterprises choose continuous cross-border mergers and acquisitions to enhance enterprise strength.In this paper,Joyson Electronics,a typical enterprise with continuous cross-border mergers and acquisitions recently,is selected as the objective of study,its short-term and long-term performance of cross-border mergers and acquisitions is analyzed based on the study of former mergers and acquisitions performance.Analysis on short-term performance by means of event study shows that Joyson Electronics’cross-border mergers and acquisitions has been responded well in the market and it brings a positive wealth effect to shareholders in a short time.Then,the long-term performance of cross-border mergers and acquisitions is evaluated by using the balanced scorecard and economic added value.Firstly,the long-term performance is comprehensively evaluated from four dimensions of finance,customer,internal process and learning and growth.From the perspective of finance,with the continuous mergers and acquisitions,the operating revenue and net profit of Joyson Electronics in recent years has improved significantly.However,the return on equity indicates that continuous mergers and acquisitions fails to significantly improve the profitability of the company.For customers,Joyson Electronics increases its sales channels and market share through continuous cross-border mergers and acquisitions.While in regard to the internal process,there is no significant change regarding the ratio of all expenses to operating income,showing the good cost management of Joyson Electronics.From the learning and growing dimension,the increased investment on R&D shows that Joyson Electronics pays more attentions to the innovation ability of enterprises.Additionally,it can be found that the continuous mergers and acquisitions created value for Joyson Electronics,but how to further improve the performance of mergers and acquisitions still depends on the later integration effect.In conclusion,Joyson Electronics has expanded company’s original sales market through continuous cross-border mergers and acquisitions,gains new profit growth point and performs well in long-term performance.Trough continuous cross-border mergers and acquisitions,Joyson Electronics has acquired many patents and advanced management theories,entered into the emerging fields,for instance,automotive electronics,intelligence and security,improved company’s industrial chain,possessed the global supply capacity,obtained a lot of quality customer resources and considerable income resources and performed well in both short-term and long-term performance.The experience of Joyson Electronics is a good reference to other automotive parts companies in China. |
