The Impact Of Technology M&A On Market And Financial Performance Of Acquiring Company

Since the first merger and acquisition(M&A)in China in the 1980 s,with China's economic strength growing,the capital market refining and the policies about merger and acquisition introduced,it has become one of the most important ways for enterprises to optimize the allocation of resources and achieve rapid expansion.However,there lies risks in merger and acquisition.Different types and different enterprises of M&A,and so on,can lead to different outcomes.Take the present situation in our country as an example,China has a large number of manufacturing enterprises,which,with the increasingly fierce international competition,continuously increased costs and exports by simple processing,are facing enormous pressure for surviving.Therefore,mergers and acquisitions by way of technology to expand and strengthen the enterprises,and meanwhile improving the ability of technical innovation,are becoming the effective ways for Chinese enterprises.It can transform the ability of innovation into the output of innovation,and bring the market performance and financial performance as well.It is right under such a situation that the PHILISENSE,considering its development strategy for adapting to the environment and seeking further development,merged and acquired the 100% stocks of SINOBPO and AIR-WORLD on December 25,2014,reaching its goal of technology expansion,technology upgrade.This thesis,first timing the announcement date of M&A as the event time,calculates the abnormal return ratio and the cumulative abnormal return ratio and carries out a traditional event research for the technology M&A.And later,based on the data of software and information technology services of China's high technology industries between 2010 and 2015,this thesis deploys an empirical research on the influences of enterprises' stock returns,concerning the factors about the number of personnel and the amount of investment,by way of setting up the regression model,intending to explore the influence on market performance of technology mergers and acquisitions.Finally,the thesis analyzes the financial indicators of M&A cases,and studies the impact of technology acquisition on the long-term financial performance.This thesis selects the M&A case of PHILISENSE with SINOBPO and AIR-WORLD,and based on this event,studies the market reaction and operating conditions of the changes before and after.This thesis also evaluates the perspective of R&D investment and other aspects after M&A,and further more,studies theimpact of technology M&A on enterprises' performance.The results show that: firstly,technology M&A has a positive influence on the market returns of the acquiring enterprise;Secondly,technology M&A has a greater performance than the enterprise's self-investment in software and information technology services industries;Finally,by analyzing the financial indicators of the enterprise,this thesis finds that technology M & A can enhance the enterprise's financial performance.By analyzing and evaluating the process of M&A cases,we further exploit the keypoints of technology M&A in software and information technology service industries,hoping to offer some reference for the coming waves of M&A to the enterprises related.