Research On The Motivation And Performance Of Haier Smart Home's Continuous Cross-border Mergers And Acquisition

Under the background of global economic integration in the 21 st century,trade between countries is becoming more and more frequent,and cross-border M&A has gradually become an effective way to expand.Its main effects are to transfer residual capacity,expand market share,obtain scientific resource and technology,improve management efficiency,enhance brand value and so on.At the same time,Chinese household appliance industry is facing with the problems of fierce competition and overcapacity,its low brand value and weak scientific research ability for the reason that it started later than the foreign household appliance industry are its problems as well.In order to solve these,Haier positively answered the call which encourages our enterprises to invest abroad and do foreign trade by choosing continuous cross-border mergers and acquisitions.This paper selects the Haier’s continuous cross-border M&A of GEA and Candy as a case.First of all,after studying the background and significance of Haier’s continuous cross-border mergers and acquisitions,making a clear concept definition of continuous cross-border merger and acquisition,reviewing the related domestic and overseas literature,and combining the coordination theory,market theory and the theory of signal transmission,in order to form the theoretical basis of this paper.Then,it introduces the event of the Haier’s cross-border M&A of GEA and Candy.After that,the case analysis method is used to study this case,and it is found that the reasons for Haier to carry out continuous cross-border M&A mainly include its development of globalization strategy,rapid acquisition of brand,acquisition of core technology,integration of industrial chain,and short-term market performance,financial performance and other performance of Haier are analyzed by data analysis,it is found that Haier’s short-term market performance of continuous cross-border m&a is not ideal instead of huge excess return,its financial performance is excellent,especially its dramatic overseas income growth,other performance also have a positive effect,in general,continuous cross-border m&a gives Haier positive influence of performance.Finally,the conclusion and enlightenment are drawn.This paper hopes to give some suggestions to Chinese enterprises in the future through the case study of Haier’s continuous cross-border merger and acquisition,in order to achieve the better effect.