Factors Affecting M&A Performance Of China's Pharmaceutical Industry Listed Company

The pharmaceutical industry belongs to the strategic emerging industry identified in the 'Twelfth Five-Year Plan" and is also the key development area of "Made in China 2025".Its development level is directly related to the national economy and people,s livelihood.At present,under the background of stricter policy supervision,the overall growth rate of China's pharmaceutical industry has slowed down.Meanwhile the Internet medical treatment developed so rapidly to bring certain impacts on the traditional medical manufacturing industry.The competition in the pharmaceutical industry has become increasingly fierce.M&A and reorganization is one of the effective means to integrate market resources,and it is also a realistic choice for the expansion of international pharmaceutical giants.Under the guidance of the staters policy of encouraging the pharmaceutical industry to become bigger and stronger through industrial integration,mergers and acquisitions in the next few years are still one of the themes of the pharmaceutical industry.The existing literature focuses on whether M&A will bring about changes in corporate performance.The research on the factors affecting M&A performance mostly focuses on single factors or the general factors affecting the overall M&A performance of listed companies,and rarely combines industry life cycle,profit mode and Research on the characteristics of mergers and acquisitions.This paper uses the financial indicator method to evaluate the M&A performance of listed companies in the pharmaceutical manufacturing industry,and analyzes the factors affecting the M&A performance through the analysis of the pharmaceutical manufacturing industry and the characteristics of M&A.This paper selects the type of merger,the size of the merger party,the payment method and the shareholding ratio after the merger as the explanatory variables,selects the M&A data of the listed companies in the pharmaceutical manufacturing industry from 2011 to 2015,and uses the factor analysis method to comprehensively evaluate the listed companies in the pharmaceutical manufacturing industry before the merger.The performance of one year,the current year and the last three years,and the regression analysis of the explanatory variables by the difference between the performance of the current year and the second year of the merger and the year before the merger.In order to exclude the influence of other factors,whether to use free cash flow,sustainable growth rate,and government relevance as control variables.Finally,it is concluded that the cash payment method has a significant negative impact on the M&A performance.The M&A type and the shareholding ratio after M&A have a significant positive impact on M&A performance,but the impact takes a long time to be reflected.Through the summary of the past mergers and acquisitions experience of listed companies in the pharmaceutical manufacturing industry,it is expected to provide support for the upcoming industrial integration and develop merger and acquisition plans from the perspective of improving M&A performance.