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The study on key influencing factors of mergers and acquisitions performance based on China state-owned listed enterprises

The study on key influencing factors of mergers and acquisitions performance based on China... Purpose– The purpose of this paper is to analyze the key influencing factors which affect the performance of M&A and the key influencing factors by establishing grey relational sequence model. The results can not only perfect the current existing theoretical system, but also provide theoretical guide for M&A practice. Design/methodology/approach– First of all, this paper analyzes the M&A performance through the literature reviews, and then establishes the grey model about M&A performance from three influencing factors: profitability, operational and development capacity to analyze its key influencing factors which affect M&A performance. Furthermore, the key factors influencing of M&A performance are analyzed, the results can be obtained through the analysis of the grey relative degree based on six years’ data of state-owned enterprises. Findings– In this paper, some results can be found that ownership restriction and executive compensation can significantly affect corporate profitability and operation ability. M&A and institutional investors can be affected greater from the perspective of development ability and profitability. In general, enterprise scale has little affect on the performance after M&A. Practical implications– With the sustainable development of economic globalization, M&A has become an important strategy for the rapid growth of the enterprise, enlargement market and brand effect. But the performance after M&A in most enterprises does not improve. As the pillar of the national economy, state-owned enterprises have an important impact on China’s economic development and urgently need to be reformed. Originality/value– This paper analyzes the key factors through establishing grey relative sequence model to analyze the correlation of M&A performance and influencing factors, and finds key influencing factors which affect the performance of M&A. The conclusion can provide policy guidance for the improvement of M&A performance in the future. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Grey Systems: Theory and Application Emerald Publishing

The study on key influencing factors of mergers and acquisitions performance based on China state-owned listed enterprises

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2043-9377
DOI
10.1108/GS-07-2015-0036
Publisher site
See Article on Publisher Site

Abstract

Purpose– The purpose of this paper is to analyze the key influencing factors which affect the performance of M&A and the key influencing factors by establishing grey relational sequence model. The results can not only perfect the current existing theoretical system, but also provide theoretical guide for M&A practice. Design/methodology/approach– First of all, this paper analyzes the M&A performance through the literature reviews, and then establishes the grey model about M&A performance from three influencing factors: profitability, operational and development capacity to analyze its key influencing factors which affect M&A performance. Furthermore, the key factors influencing of M&A performance are analyzed, the results can be obtained through the analysis of the grey relative degree based on six years’ data of state-owned enterprises. Findings– In this paper, some results can be found that ownership restriction and executive compensation can significantly affect corporate profitability and operation ability. M&A and institutional investors can be affected greater from the perspective of development ability and profitability. In general, enterprise scale has little affect on the performance after M&A. Practical implications– With the sustainable development of economic globalization, M&A has become an important strategy for the rapid growth of the enterprise, enlargement market and brand effect. But the performance after M&A in most enterprises does not improve. As the pillar of the national economy, state-owned enterprises have an important impact on China’s economic development and urgently need to be reformed. Originality/value– This paper analyzes the key factors through establishing grey relative sequence model to analyze the correlation of M&A performance and influencing factors, and finds key influencing factors which affect the performance of M&A. The conclusion can provide policy guidance for the improvement of M&A performance in the future.

Journal

Grey Systems: Theory and ApplicationEmerald Publishing

Published: Feb 1, 2016

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