Research On The Performance Of Enterprise Mergers And Acquisitions

Over the past three decades of reform and opening up,China's market economy has developed rapidly,GDP ranking second in the world.With the further development of market economy,mergers and acquisitions among enterprises become more and more frequent,which is the inevitable requirement of the development of market economy.From the perspective of China's development process,the number of inter-firm M&A shows an upward trend year by year,and the total transaction amount has increased significantly,increasing from less than 100 million yuan at the beginning to trillion yuan at present.In the 1990 s,the wind of mergers and acquisitions began to sweep across China,and mergers and acquisitions in the real estate market also entered a period of rapid development.Through mergers and acquisitions,real estate enterprises can obtain land,merged enterprise projects and other resources,can save costs,improve market share,so mergers and acquisitions have a very good role in promoting the further development and growth of real estate enterprises.With the strengthening of the state's regulation and control of the real estate industry,there are more and more restrictions on land,financing,sales and other aspects,which further exacerbates the survival pressure of real estate enterprises,and will promotes the re-integration of the real estate industry.Taking Wanda Commerce and Rong Chuang "Century M&A" as an example,this paper makes a thorough discussion on the motivation of both sides of M&A,and evaluates the performance of M&A by using event study method and financial index analysis method.The analysis results show that the impact on short~term performance is good from the perspective of shareholder wealth,and the overall performance is better from the perspective of financial data.Then,the risk of M&A is systematically analyzed.On this basis put forward some suggestions to improve the performance of M&A of real estate enterprises,which can provide enlightenment and reference for the healthy development of real estate enterprises in China.