Study On The Performance Of Overseas Merger And Acquisition For Ruyi

A company purchases a foreign company,it can be called overseas merger and acquisition,it is a kind of economic activity.Specificly,the aim for a company that who choose to do the overseas merger and acquisition is to gain assets of other companies or to control other companies,so that they can improve the enterprise value.There are many payment means that can be used.Companies in many countries are making progress,the communication between countries becomes more and more frequent,and lots of countries have loosen their restraint of trade.Under these circumstances,the quantity of transnational corporations grows,and overseas merger and acquisition becomes more popular.In recent years,China has been continuing to develop with increasingly higher economic development level,and the government promulgated several policies to encourage companies to do the overseas merger and acquisition,a large number of Chinese enterprises chose to go abroad and cooperate with foreign enterprises.In addition,more scholars show interest on the phenomenon.This paper studies the mergers and acquisitions performance for textile industry by taking Ruyi for instance,the research contents include M&A cause ? activities ?performance and advice.I sorted the relevant theories and literatures out,and then studied the overseas merger and acquisition activities for Ruyi.There are two ways to measure the mergers and acquisitions performance: Balanced Scorecard(BSC)and Event Study Method.Balanced scorecard is the kind of way that assesses the performance through four parts,it is a new perspective.Event study method belongs to empirical research,it is more accurate.I got the conclusion after analysing.As a whole,overseas mergers and acquisitions improve the performance of Ruyi.At first,the performance was not optimistic,but it became better when Ruyi adapted to the situation.Further,the empirical research shew the same outcome.The paper can be divided into five parts.First part is the background,it consists of the current situation and meaning of overseas merger and acquisition;The second part is the summary of relevant theories and literature;Then the third one,this part includes the introduction of Ruyi and its mergers and acquisitions activities and cause;The fourth part is to assess the mergers and acquisitions performance of Ruyi by using balanced scorecard and event study method,and the analysis for the reason;The last part is conclusions,besides,there are suggestions for textile companies that want to develop overseas mergers and acquisitions.