The Research On The Long Term Performance Of Listed Companies After Diversified Mergers And Aquisitions

Merger and acquisition is an important way for enterprises to develop and expand.The United States has experienced five large-scale mergers and acquisitions in history,while China's M&As started relatively late,but developed rapidly.Over the past ten years,the horizontal M&As made up more than 50% of all domestic M&As.Meanwhile,China is upgrading the industrial structure,so the diversified M&As of the listed company have increased a lot both in quantity,amount and ratio.In this context,it is very important to study the causes,the history of the development and the impact on the listed companies of diversified M&As.This paper defines the concepts,and briefly introduces the history of M&A.Then it summarizes the motivation theory of diversified M&A,as well as the research methods and conclusions of M&A performance.On this basis,this paper decides to adopt the accounting index research method to study the long-term performance changes of listed companies before and after the diversified M&A.In empirical aspect,this article selects 220 listed companies,that had completed M&As during 2011 to 2013.Then selects five financial indicators that reflect the company's profitability,operation ability and growth ability,and generates comprehensive performance indicators based on the factor analysis method.After that,this paper uses the descriptive statistics and test,and finds out the performance of listed companies is on the rise in three years after the completion of diversified M&As,from an intuitively understand.In order to make up for the inadequacy of descriptive test,this paper constructs the multiple linear regression model and diversification indicator to test the correlation of M&A performance and M&A types.Through these two kinds of models,the paper tests and verifies that the diversified M&As is improving the long-term performance of listed companies.