Research On Performance Evaluation For Overseas M&A Of IT Enterprises In China

With the "Internet Plus" strategy being mentioned in the national strategic plan of China,the Internet industry has gradually become an important cornerstone of the national economic and the social development in China.At present,Baidu,Tencent,and Alibaba Group have formed three pillars in the territory of the Internet industry of China,and Internet enterprises such as JD Co.,Ltd,NetEase Co.,Ltd,Bouncer Technology Co.,Ltd.,and Sina Co.,Ltd equally divided the rest.In order to respond to the high-frequency changes in the technology of the Internet industry and the expansion of the market,overseas acquisitions of Chinese Internet enterprises have become increasingly frequent.In the meanwhile,overseas M&A have gradually become the essential way to seek better development for Internet enterprises who have the leadership in China.However,based on the characteristics of the Internet industry,there are few studies on its overseas M&A performance evaluation.Therefore,it is necessary to summarize the causes of M&A based on the characteristics of the Internet industry and establish a targeted performance evaluation system to determine whether synergy effects are generated through M&A activities.This article selects China's leading stock value-added Internet service provider C company listed on the Hong Kong stock market as a case study object,analyzes the causes of mergers and acquisitions based on its industry characteristics and builds a related performance evaluation system.Firstly,the incident research method was used to evaluate the short-term performance after the implementation of the merger and acquisition strategy.Based on the calculation of CAR,the immediate view of the capital market's overseas horizontal M&A strategy for the company C is reflected.Secondly,using the financial index method,we select related financial indicators such as solvency,profitability,operational ability,and growth ability after the merger and acquisition to evaluate the long-term performance of the merger strategy after its implementation.In addition,relevant non-financial indicators are used to take a more comprehensive consideration of their long-term performance.In addition,this paper adopts a comparative analysis method and selects competitor Y Company listed in the same industry as a comparative analysis object to further explore the influence of this overseas horizontal M&A activity on the performance of Company C and whether it has a synergy effect.This paper hopes to provide the relevant analysis for the strategic layout and long-term development of Internet enterprises in China.From the financial and non-financial perspective,the research on the performance evaluation of C company's overseas mergers and acquisitions wishes to give some advice on Internet enterprises' long-term strategies in China.