The Causes And Performance Research Of The M&A Of CTRP And QUNR

In recent years,national tourism consumption level is rising,emerging technologies and online travel industry have combined gradually,and online travel industry developed rapidly with the good policy.But,development inevitably brought competition.At present,the competition of online travel industry has heated up;the price competition has been proved to be not conducive to the long-term development of enterprise.Integration and reshape has become a new normal in Internet industry.In the mergers and acquisitions of online travel industry in 2015,the case of ctrip and qunar is the most representative,received extensive attention of the society from all walks of life.The case of ctrip and qunar promoted the end of “price war” in online travel industry.After that,most enterprises focused their attention on providing good and innovative services,and it significantly influenced the pattern of the online travel market.Additionally,the case promoted the benign ecological environment construction of the online travel industry,and it has important research significance and new idea.This paper is based on the related theory of causes and performances of M&A,after the brief introduction of the case of ctrip and qunar,this paper used literature research method,case study method and event study method to research the causes and performances of M&A.This paper studied the causes in two aspects: the aspect of the enterprise itself and the aspect of enterprise holder.In details,the first aspect includes financial condition,market performance and product innovation;and the second aspect includes the strategic planning of baidu and profit goal of common shareholders.After analysis of causes,this paper analyzed the performances of the case from three aspects: using event research method to build econometric model to analyze the stock price fluctuation;using financial indicators such as debt paying ability,operation ability,profit ability and development ability to analyze financial performance;finally giving a brief introduction of industry influence.On the basis of the analysis,the conclusion and advice are put forward.Based on the merger and acquisition case,this paper thoroughly discussed the causes and performance of online travel industry mergers and acquisitions,and we got the following four conclusions:(1)the pursuit of scale economies or monopoly profits is the root cause of the online travel industry mergers and acquisitions;(2)the merger and acquisition between ctrip and qunar has brought remarkable positive influence on the valuation of the twocompanies;(3)the merger and acquisition of ctrip and qunar can significantly improve the financial performance of enterprises;(4)the merger and acquisition of ctrip and qunar can significantly improve the ways of competition and strategy pattern of China's online travel industry.