Research On The Performance Evaluation Of China Eastern's Merger And Acquisition Of Shanghai Airlines

With the transformation of China's economic development mode,the adjustment of national industrial structure,and the increasingly severe external environment,the downward pressure of China's economy is greater,while enterprises are also facing the pressure of transformation and upgrading,of course,airlines are no exception.At present,M&A has increasingly become an effective way for enterprises to speed up business integration,enhance their monopoly position,expand their living space,and improve their transformation and upgrading capabilities.But at the same time,many M&A cases show that: Although the performance of enterprises is good in the short term after M&A,in the long run,enterprises may have the phenomenon of performance decline and profit reduction,and even the situation of both sides of M&A disintegrated or the enterprise went bankrupt,resulting in the failure of M&A.Therefore,it is very important for enterprises to design and implement M&A plans and strategies,and to evaluate the long-term performance of M&A objectively and scientifically.The merger and acquisition of Shanghai Airlines by China Eastern Airlines is a typical and representative merger and acquisition event.At the same time,it has a huge impact on the national strategic level and the aviation industry,so it is necessary to study it.This paper first focuses on the merger and acquisition of Shanghai Airlines by China Eastern Airlines,and reviews and analyzes the design and implementation of the merger and acquisition strategy.Then,the performance evaluation model of M&A with mutation progression is constructed by using mutation progression method and BSC.At the same time,the weight of indicators at all levels of the model is determined by entropy weighting method,which focuses on the empirical study of M&A performance of China Eastern's M&A of Shanghai Airlines.The results show that,although the performance of financial performance is not very good,in general,M&A improves the comprehensive performance of China Eastern Airlines,and the short-term performance is better than the long-term performance.Finally,based on the research conclusion,the following three suggestions are put forward: reasonable M&A plan and implementation strategy;comprehensive and sufficient M&A integration;comprehensive M&A performance evaluation.