Study On The M&A Performance Evaluation Of Chinese Listed Companies In The Real Estate Industry

In the western five waves of merger and acquisition practice,we can see that merger and acquisition is an important way for enterprise to realize rapid expansion and optimal distribution of resources,and also an effective way for enterprise to expand the scale.The start of the China’s merger and acquisition is later than the western countries’.However,with the rapid development of China’s economic market,more and more enterprises join in the mergers and acquisitions,and the amount of mergers and acquisitions revealed increased year by year.Since the reform and opening started in 1978,the real estate industry,as an emerging industry,had entered China ’s economic development.In these 40 years,the real estate industry had been the pillar industry in our country.And a series of social questions have also been appeared,with the rapid development of this industry.Because of it,the government has introduced relevant policies to regulate the real estate industry.Small and medium-sized real estate business will go bankrupt in the situation that the policies are introduced often and the market is already saturated.And the M&A activity of this industry is rising year by year both in quantity and amount.So the study of China’s real estate company M&A performance has important theoretical and practical significance.Firstly,this paper research on the performance of M&A.Secondly,this paper introduced the related theories and concepts.And then it summarized development of China’s real estate industry and the status of China’s real estate industry mergers and acquisitions.The next is theoretical analysis,the paper selected 107 listed companies which they participated the M&A in real estate industry in 2012 as sample and selected 10 indicators which they come from the profitability,solvency,operational capacity and development capacity.And then it extracted the main factors and calculated the factors’ score with the factor analysis,and established a comprehensive performance evaluation system in terms of the score of these factors.Through it,we found that the performance of the acquisition has been declined in the first year after the practice,but the performance has been increased in the second and third year after the practice.In order to get the factors influencing the performance,the article put forward 7 hypotheses and built the multiple regression model.And then it analyzed the impact that these factors produced by.Through it,we can found that the performance through assets acquisition is better than equity acquisition;the degree of ownership concentration has a negative impact on the performance of M&A;the size of the enterprise has a positive impact on the M&A performance;the size of the practice has a negative impact on the M&A performance;the proportion of state-owned shares has a negative impact on the performance.At the last of the article,the paper made seven suggestions that can have a good effect on the performance.