A Study Of The M&A Performance Of Chinese Listed Logistics Companies

Merger and Acquisition is an important method for a company to expand its scale.With the development of China's capital market,an increasing number of companies,including logistics companies definitely,achieve rapid expansion and promote their competition with the method of M&A.Making research on M&A performance is necessary to find whether the merging companies can achieve its goal and get performance improvement through M&A as well as what steps can be taken to improve the M&A performance.There are less papers in the past about empirical research on M&A performance in the logistics industry than the other industries.Against this background,this paper aims to add one more paper in this regard and come up with some advice on how to improve the M&A performance for the logistics companies,thus providing the guideline for the relevant M&A practices.In light of the findings of domestic and foreign scholars on M&A performance,it is uncertain for the M&A companies to benefit from the M&A practices.Taking 80 M&A cases of listed companies in the sector of logistics during the timeframe from 2004 to 2013,this paper uses the accounting research method by selecting 12 accounting indicators,which represents the company's profitability,liquidity,operational capacity,growth index and shares expansion capacity,to compute the overall scores of M&A enterprise's performance in the manner of factor analysis method.After that,the comparison will be made of the M&A performance during the specific timeframe from three years before the M&A to three years after that.One major conclusion drawn from this paper is that M&A do not bring evident and enduring performance improvement for the M&A Company,and the performance varies from time to time.During three years before the M&A,the company's performance slips down year by year.A great improvement has been gained in the year when the M&A took place.However,it decreases largely in the first year after the M&A practice,increases in the next year,and goes up again in the third year after that.This paper takes the view that M&A may bring performance improvement to the company in the short term,but it varies from time to time in the long term because it usually takes a long time to get the synergy effect.Furthermore,suggestions are made from the perspective of the company,logistics industry and the official government to improve the M&A performance based on the findings of the research.