Listed In The Networking Industry M & A Performance Evaluation Study

The international development history of Enterprise Merger and Acquisitions(M&A)has been over a hundred year.Until now,western countries have been experienced five wave of Enterprise mergers and acquisitions.The M&A of Chinese corporations is marked with late start but rapid growth.In 2015,China has completed 2692 mergers and acquisitions,in which there are 80 merges of Internet of Things company(IOT).The IOT is not only one of the most potential industries at present,but also one of industries with active national strategy layout.Therefore,the IOT appears to have rapid growth trend.At present,due to fierce competition and increasing problems of scale integration among the IOT,how to expand business to further development has become a key problem.Under the continuous improvement of capital market,the merger and acquisition of corporations has become the most convenient way to expand the business scale and seize market share for the IOT.Then,how much benefit will bring to the growth of the IOT through mergers and acquisitions?This article studies on merger performances of IOT listed companies by choosing the Tatwah Smartech with both connotative and extensional development as the study object based on previous research.The study analyzes the intention of acquiring the Neweast Network International Pte Ltd in 2013 and assesses the performance of this acquisition by studying market reaction and financial database.In order to make reasonable assessment,this study uses previous common study skills such as event study and financial index analysis plus Economic Value Added(EVA)performance measurement method and non-financial performance index analysis when analyzing merger performance.The main finding of the study is that the acquisition of the Neweast Network International Pte Ltd not only increases shareholders’ wealth of the Tatwah Smartech,but also improves the capital scale and other capabilities of the Tatwah Smartech to some extent.In conclusion,mergers and acquisition have brought help for the development of enterprises and increased companies’ general competitiveness.Furthermore,the study is intended to lighten the future studies to come up with a mature merger and acquisition performance measurement system especially to the IOT industry to better guide corporation merger activities.