Research On Merger And Acquisition Performance Of Listed Companies In China’s Machinery Industry

In recent years,with the popularization of the strategic concepts such as “Made in China 2025”,“Revitalization of the Real Economy” and “Intelligent Manufacturing”,the transformation and upgrading of the traditional machinery industry has become a major task to consolidate the economic foundation.As a micro-foundation of it,the machinery enterprises are actively adjusting the development plans in response to the demand for high-end products in the current economic times,and the mergers and acquisitions is a significant part of this.Since2015,China’s machinery industry’s M&A transactions have become increasingly prosperous,setting off a boom in the industry.However,whether the M&A activities have a positive impact on the company is still to be calmed down.Based on the above background and the present theories,this paper firstly defines the definitions and theories related to M&A activities.Then,it summarizes the development of China’s machinery industry and the mechanical enterprises’ mergers and acquisitions situation.Subsequently,the paper selects 70 M&A activities of the listed mechanical companies of China from 2015 to 2018 based on the M&A types,payment methods and whether it’s a connected transaction,using the event study method to empirically analyze the short-term M&A performance.The results show that the M&A behavior has brought significant positive performance to the listed company in the three or four days after the announcement date of the M&A event;the research on the classification of the sample according to the type of merger,the means of payment and connected transaction shows that China’s mechanical listed companies will get more positive performance in the horizontal M&A activities and equity payment M&A activities.In addition,the existence of connected transactions will also bring positive performance,which is opposite to the general cognition.So,this paper selected two samples to explore the reasons.Finally,based on the research conclusion,it provide some suggestions for the current M&A activities in China’s machinery industry,such as optimizing the integration after mergers and acquisitions,strictly controlling the risk of connected transactions and carrying out overseas mergers and acquisitions reasonably.