Study On The Performance Of Enterprise M&A Based On CSR Merged With CNR

Mergers and acquisitions has become a common means of many giant corporations with the increased market competition all over the world,for the sake of pursuing the preponderance of the market and the integration of resources.In fact,many corporations just didn't know why they were merging.In this paper,based on explanation of concepts related to corporate M&A,existing M&A performance assessment methods and conclusions were reviewed.The merge of CSR and CNR was taken as an example for case study to analyze the performance.In 2014,China's domestic rail transit industry gradually became saturated,and competition between the two vehicles in the international community has intensified.To promote the long-term development of the two companies,mergers and acquisitions are inevitable.In this paper,we first analyzed the motivations of M&A.After researching that,we found that the motivations for this merger mainly include synergistic motives,achieve economies of scale,access to market forces and strategic motives.Secondly,this paper analyzes M&A performance both in externally and internally.The analysis of external M&A performance is mainly based on stock price analysis and event research to study short-term market performance.The results show that external market investors are generally optimistic about mergers and acquisitions,and the M&A have achieved good market performance.The analysis of internal M&A performance mainly adopts common financial indicators and some other indicators.The results show that most of the indicators have been greatly improved after M&A or have an advantage over the industry.Internal M&A have generally performed well,but some aspects still need improvement.In general,the internal and external M&A performance of the company has achieved certain achievements.Finally,according to the problems found in the research,this paper provides some suggestions for the company and the companies to be merged.The suggestions will promote the CRRC to get more achievements and prompts other companies to make careful decisions and do integration works as much as possible after M&A.