Research On The Performance Of China A-share Real Estate Companies Under Horizontal M&A

Merger &Acquisition is a way to allocate resources in the capital market,and also a way for enterprises to expand scale.Since the real estate industry has a prominent position in the national economy,and M&A events in the real estate industry are also increasing year by year,it is worth studying whether M&A can improve the performance of M&A enterprises.From the perspective of horizontal M&A of real estate enterprises,this paper studies whether the short-term and long-term performance of listed real estate enterprises can be improved under horizontal M&A.First,this paper studies the background of M&A,the performance of M&A and the motivation of M&A relate to the theory and analyzes development of the real estate industry in recent years.After that,this paper begins to conduct an empirical study on the short-term performance and the long-term performance of horizontal M&A of listed real estate enterprises.This paper selects the horizontal M&A of real estate enterprises occurred in 2016 as the research samples.The short-term research calculats the CAR of each day of the event window by using the method of event studying,and compares its change.The long-term research uses the method of factors studying to calculate the comprehensive performance score of each year before and after M&A.The research result of this paper shows that although horizontal M&A of real estate companies brings positive cumulative abnormal return in the short term,the CAR is very small.In the long term,the comprehensive performance scores of horizontal M&A of real estate companies decline and then rise slowly before and after M&A.Finally,this paper puts forward some suggestions to the participants of M&A.For example,listed real estate enterprises should pay attention to the cost of M&A and resource integration;Government departments should pay attention to themarketization;Intermediary agent should be diligent and responsible.