The study on key influencing factors of mergers and acquisitions performance based on China state-owned listed enterprises
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.
Keywords
Citation
Zhao, X., Qu, H. and Huang, Y. (2016), "The study on key influencing factors of mergers and acquisitions performance based on China state-owned listed enterprises", Grey Systems: Theory and Application, Vol. 6 No. 1, pp. 41-50. https://doi.org/10.1108/GS-07-2015-0036
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited