Research On M&A Performance Of Listed Companies In China's Real Estate Industry

With the development of economy,the competition among real estate companies has become increasingly fierce and the competitive pressure has gradually increased.At the same time,the tightening of the regulatory policies has caused a large number of regional small and medium-sized real estate companies to face serious financial difficulties.The dual pressures of policy and market have objectively promoted the rise of real estate mergers and acquisitions.On the subjective side,in order to effectively shorten the real estate development cycle,speed up the development of the real estate market in the new region,and weaken the impact of uncertainties such as local administrative barriers.Some large-scale,large-capitalized real estate companies have begun to adopt mergers and acquisitions to achieve market expansion and cross-regional operations.Mergers and acquisitions can optimize resource allocation,encourage large-scale gathering of funds in a short period of time,and enhance the company's competitive strength.The mergers and acquisitions between companies within the industry can optimize the industrial structure,achieve the survival of the fittest,and comply with the needs of industrial upgrading.This paper defines the M&A performance of real estate companies by combing relevant literature.The event research method and accounting research method are used to analyze the short-term and long-term M&A performance of real estate companies.The M&A events of real estate companies that occurred in China's A-share listings occurred in 2013-2015 were selected as research objects.By calculating the excess return rate,the paper analyzes the impact of changes in stock prices on the short-term M&A performance of real estate companies in the 80 days before and 20 days after the announcement of the merger and acquisition;using factor analysis to select profitability,solvency,operational capability,development capability and Five first-level indicators of cash ability,operating profit margin,equity ratio,inventory turnover rate and other 14 secondary indicators to build a M&A performance evaluation index system,calculate the comprehensive performance score,and analyze the M&A events from the perspective of financial indicators,influences.After empirical analysis,we found the characteristics of the performance of China's A-share listed real estate companies in the window period:the short-term and long-term M&A performance of most companies showed a continuous decline.Although M&A activities can effectively optimize the real estate company's cash flow situation and enhance its solvency,it will not bring significant wealth effects in the short term,and it will not have a positive impact on the company's business activities in the long run.Finally,based on the results of empirical research,this paper analyzes the main problems existing in real estate mergers and acquisitions,and proposes relevant improvements.The research in this paper provides a basis for decision-making for the benign development of the industry.