Research On Performance And Influencing Factors Of Haixin's Acquisition Of Songcun

With the rapid development of economic,the merger and acquisition has become an important way for Chinese enterprises to obtain the market competitive advantage.In recent years,the mergers and acquisitions events of enterprises constantly emerge,the scale increasingly expanding.As an important part of food industry,the competition of frozen food industry has become increasingly fierce.To enlarge the market share,it's very important for frozen food enterprises to obtain rapid development by the mergers and acquisitions.However,some main merger and acquisition enterprises lack of stamina in development and it's hard for them to keep good performance in the long term,so whether two enterprises can achieve good integration and improve their performance after the merger and acquisition is a problem worth discussing.The paper takes the event of Haixin's acquisition of Songcun for research object.It analyses the merger and acquisition motivation and the effect on the performance of merger and acquisition.It studies the enterprise's performance before and after the merger and acquisition event by using the event method,the financial indicators method,the principal component analysis method and the EVA analysis method,which can provide the experience and enlightenment for food industry.The paper is divided into five parts:the first part is introduction;the second part is the theoretical basis.It mainly elaborates the related effect theories of merger and acquisition,such as synergistic effect theory,transaction cost theory,market power theory and so on and it elaborates performance appraisal methods;the third part is case analysis.It includes the background of merger and acquisition,the basic introduction of trading parties,the analysis of motivation on the basis of SWOT analysis,introduces the merger and acquisition process and analyses the risk;the fourth part is the performance analysis of merger and acquisition.This part uses the event method to study the capital market reaction,and uses the financial indicators analysis method,the principal component analysis method and the EVA analysis method to study the financial performance of Haixin;the fifth part is the influencing factors of performace.It mainly analyses the influencing factors of the merger and acquisition event of Haixin and Songcun according to product management,payment method,human resources and culture of the enterprise,industry factor;the sixth part is the study conclusion and enlightenment.The conclusions of this paper are:(1)three motivations have not totally achieved.Haixin can obtain high technology and enlarge the consumer group,but it can't lower the cost effectively through the the merger and acquisition;(2)the market considered this event as good news.By using the event method,it is found that the cumulative abnormal return increases,which shows that the merger and acquisition event has positive effect on the share price and it can also make the shareholder wealth increase;(3)the merger and acquisition event don't generate positive financial effect.According to the result of financial indicators analysis and principal component analysis,it is found that the merger and acquisition event makes the profitability,solvency and growth ability of Haixin decrease.It makes the operational capability fluctuate.According to the result of EVA analysis,it is found that EVA of 2012-2017 are negative,which shows that the effect of capital investment is not good.To sum up,in the long term,this event doesn't generate synergy effect;(4)a number of factors have effects on the performance of the merger and acquisition.Because product management,human resources and corporate culture don't achieve good integration,and the enterprise uses premium cash payment,the merger and acquisition performance of Haixin decreases.