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.
Grey Systems: Theory and Application – Emerald Publishing
Published: Feb 1, 2016