Research On The Recognition Of The Target Enterprise's Characteristics In Mergers And Acquisitions

As one of the important financial strategies for external expansion of enterprises,mergers and acquisitions can not only expand the scale of enterprises in the short term,but also integrate resources,complement each other's advantages,optimize and improve the industrial chain,and achieve faster development.The most crucial step in the success of a merger is to choose a good M&A target.How to select a target company from a large number of enterprises is particularly important.Therefore,the identification of the characteristics of the target companies being acquired is a hot topic in the capital market.This paper studies the M&A events of China A-share listed companies from 2016 to 2018,and selects 13 variables from the six aspects of profitability,management efficiency,capital structure,market valuation,equity concentration and growth potential.The indicator uses the time-dependent COX model to identify the target characteristics of the acquired company.The model is tested by the goodness of fit,and after entering the target company and the non-target enterprise,the prediction accuracy of the COX model is 79.96%.Finally,the logistic regression model was used for comparative analysis.The accuracy of the logistic regression model was 72.45%.The research results based on COX model show that most of the M&A target enterprises have the characteristics of low management efficiency,poor profitability,scattered shareholding structure and small scale of enterprises.This proves that the COX model is superior to the traditional Logistic regression model in the study of the target enterprise identity recognition.