Research On M&A Performance Of Listed Companies Based On Industrial Life Cycle

Mergers and acquisitions reflect the distribution and redistribution of resources and have a strategic impact on the company's ability to increase its core competitiveness and enhance its sustainable profitability.M&A has always brought about the flow of huge amounts of capital,which will undoubtedly have an impact on the stability of the market and cause a social sensation.Many large companies in the United States have developed because of mergers,and few large companies have grown up due to internal expansion.M&A,as an efficient way to optimize the allocation of resources,brings about economies of scale and enables the company to develop rapidly..Therefore,mergers and acquisitions are hot issues that cannot be ignored in today's financial markets.This article examines the different types of M&A performance from the perspective of the industry life cycle.Taking the M&A event that occurred in 2014 as the research object,the life cycle of the sample companies in the motherboard,small and medium board,and GEM is first divided into three stages:growth,presentation,and recession.Then the sample set of 557 listed companies will be collected.The 11 types of financial panel data before and after 4 years of merger and acquisition use the factor analysis method to examine the M&A performance of mergers and acquisitions in different industry life cycle companies and the effect of adopting multiple merger types on the performance of mergers and acquisitions.Finally,the following conclusions are drawn:(1)The industry life cycle does have an impact on M&A performance;(2)M&As in the recession period have the most significant performance improvement,which can be seen from the M&A analysis of vertical M&A and M&A.(3)Performance of mergers and acquisitions companies in growth period has large fluctuations,but performance improvement achieved by mixed mergers and acquisitions is relatively good;(4)Performance improvement effect of mergers and acquisitions by companies that are in mature period is limited;(5)Listed companies M&A strategies not only have an impact on performance,but also have a negative effect on the company's life cycle.