Case Study On The Long- Term And Short-term Performance Of Serial Acquisiton Of CFLD

Serial acquisitions refer to the situation the number of mergers and acquisitions over five times in three years.The unique nature of real estate industry determines acquisition frequency.Under the policy background of housing residence instead of vicious speculation,the real estate enterprises have strategic implementations through M&A for new growth models.CFLD has been concerned widely for her deeply cultivation in the field of industrial new city for many years and accumulation of rich experience.Taking the selected 44 M&A events of CFLD between 2012 and 2017 as the case study object,this paper summarizes the theoretical basis and research status,and conducts empirical and normative research on M&A performance respectively based on event study method and EVA study method for the further study on short-term and long-term acquisition performance.The research results can be used as reference for enterprises,governments and regulators to adapt to the new development stage.Under the framework of the event research method,the short-term M&A performance is measured by the accumulative excess return rate CAR,and its significance is tested by t statistics.The study on short-term performance is divided into two parts mainly: one is to explore the short-term performance of M&A events in different trading days in the window period;second,all sample events are taken as a single research object to study their short-term impact on M&A performance.In addition,the correlation between M&A order and performance has been studied furtherly.The empirical results show that the single M&A event has a significant positive effect on the performance on the third day,the second day and the day before the announcement.Although that all M&A events as a whole did not have a significant impact on stock returns,they were generally positive.(3)The M&A order and performance have an “inverted U-shaped” trend relationship,which is mainly related to the self-learning and overconfidence behavior of company managers.The study on long-term M&A performance bases on Economic Added Value(EVA)Study Method,and regard EVA result as the quantitative result of long-term M&A performance,which is due to put the capital cost and capital structure into the measuring range.Additionally,in this paper,we eliminate the time-effect interference of policy and environment and select comparable companies for comparative analysis.CFLD's serial M&A reflects the times of real estate enterprise transformation in miniature.It is an important task for the whole industry to seek new paths,develop new models and create new growth points through frequent strategic mergers and acquisitions.The empirical results and research conclusions are integrated.Establishing in the present situation and complying with the national strategic deployment,this paper puts forward to the constructive countermeasures and the suggestions,from the point of enterprises,government and supervision departments respectively,on the purpose of establishing a long-term real estate system,promoting the healthy and orderly development of economy in China.