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Human Resource Integration in Hoirzontal M&A of Our Country

On 23/09/2013, in Management, by rain

Enterprise M&A is the result of industry development and the competition between enterprises, the product of the social economy development, a sure way of economic transformation, an effective way of resource allocation. At present, the market of enterprise M&A are becoming more and more active in our country, and is mainly in horizontal M&A. But related data shows that the success rate of enterprise M&A is very low in our country, we encounter many problems in the process of M&A, and did not reach the targets, human resources integration is one of the main problems. In order to promote the success rate of M&A, and provide operable guideline for human resource integration in M&A, this thesis researches human resource integration of horizontal M&A.Based on some other scholars’research results and the analysis of some cases, this paper summarizes some problems of employee which is in psychology and the behavior, and analyzes these problems to find out the solutions of the problems. I put forward personnel integration, human resources management practice integration and cultural integration, which are based on effective communication. Personnel integration includes personnel adjustments and layoffs which are established in human resources detailed evaluation. Human resources management practice integration mainly studies the design of the incentive system which includes the integration in healthy salaries, motivated salaries and the career development of employee according to the two-factor theory. Cultural integration studies the selection of mode, some principles and precautions in the cultural integration of horizontal M&A.The result of this thesis has a certain operability, and it has a certain reference value to the human resource integration of horizontal M&A in our country.

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Empirical Research on the Influence of the M&A of Manufacturing Listed Companies and Enterprises’ Value Creation

On 23/09/2013, in Agriculture, by rain

Our country is working hard to push forward the strategic adjustment of state‐owned economic layout and structure, M&A is an important means to adjust the national industrial restructuring and reasonable allocation of resources, also M&A is an important way to make the enterprise stronger and a nimble quickly. The purpose of M&A is to create value for the enterprise, only if the M&A creates value for the enterprise, it can really highlight the real value of mergers and acquisitions. Manufacturing is the pillar of the national economy, the important symbol to measure a country comprehensive strength and international competitiveness, and also the hot area of the merger and acquisition. The M&A of manufacturing industry list the first place in China’s M&A industry, occupy a large proportion of China’s M&A cases. Therefore, it is meaningful to study the M&A of manufacturing listed companies.From the point of view of the M&A companies, combined with the M&A status of China’s manufacturing industry listed companies, this paper takes148companies that occurred M&A in2008as sample companies, selects10financial data of these companies from2007to2011as the sample data, empirical researches on the merger and acquisition of Chinese listed companies value creation and its influence factors.Using factor analysis, this paper studies the issue whether the M&A can create value, draws a conclusion that the M&A can create value. Through the factor score model obtained composite score of the sample companies each year, then adopts the nonparametric test combined with the two paired samples Wilcoxon test and Sign test, through the positive ratio comparing with value changes before and after the merger of the companies,found that M&A create value for enterprises, but presents undulatory property.Using multiple linear regression model of M&A value creation the paper studies the factors influencing the results found, whether M&A between and enterprise value creating significant correlation, and mergers and acquisitions, equity concentration ratio, the proportion of state‐owned shares, the proportion of independent directors, merger and acquisition net cash flow value creation had no significant correlation. Through the positive ratio comparison before and after the merger of company value changes, find related acquisitions of listed manufacturing companies improve corporate value, and better than the unrelated M&A.

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Research on the Influence of Enterprise Growth by M&As

On 23/09/2013, in Management, by rain

Nowadays,the global economy develops swift, the growth of enterprise has to be in ahigh speed.M&A,as a convenient way of the growth of enterprises,had been happeningall through the world. Yet recent years, in our country the number of the enterprise whichseeks to grow through M&A, is also growing sharply, but the result is not the same, someenterprises achieve growth or short-term growth through M&A, and other enterprises arein struggles. Therefore, what is the influence of the growth of the enterprise by M&A,especially long-term impact, is particularly important to study.This paper is based on the comprehensive review and analyzes on the basis of a largenumber of documents, restates the M&A and enterprise growth related theory, analyzesthe business enterprise growth mergers and acquisition and the relationship between thedifferent factors affecting the growth of the enterprise merger of influence. This paperselects the two cities in Shenzhen and Shanghai in2006of the66merger enterprises assamples to research, how the enterprise executives the social responsibility reflects howthe enterprise grows, so from five aspects of the enterprise scale expansion ability,operation ability, profit ability, the ability to pay cash and social responsibility indicators,through setting up enterprise growth index system, using the method of factor analysis,extraction public factor, according to various public factor variance contribution to set upthe business enterprise merger scores growth model,calculation of annual growth of theinfluence on enterprise merger comprehensive score, and the analysis of the results, andconcludes that the merger promote enterprise in the short term rapid growth,but forenterprise long-term growth impact was not significant. On the basis of factor analysis,this paper analyzes the acquisition and different motivation, different types, differentpayment merger and whether to enterprise through mergers and acquisitions for affiliatedparties the influence of growth mode, and the results showed that the economy of scalemotivation and merges merger of enterprise growth for short-term effects are effect,long-term impact is negative, and reduce transaction cost and system effect motivationand other types of merger acquisition enterprise growth for negative influence short-termand long-term influence positive effect;The different Payment and whether the businessenterprise growth impact by M&A are no significant differences.

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Research on the M&A Financing Way

On 21/09/2013, in Management, by rain

The developed western countries experienced the massive M&A wave five times in thehistory. The reconstruction and acquisition of domestic enterprise also develops rapidly.Enterprise M&A is widely used in home and abroad,it can revitalize the inventory assets,adjust the economic structure and deepen the reformation,. Many cases indicate merger andacquisition requires a lot of money. The funding gap has become the bottleneck of merger andacquisition activity. Different financing ways determine the width of the financing channels,the cost and the risk of the financing. Compared with the developed countries in Europe andAmerica, the undeveloped domestic capital markets, the imperfect financial system, the singleM&A method and the narrow financing channel restricted the development of M&A activities.Learning the experience of developed countries, based on the domestic conditions the studyon the operation mechanism which will provide alternative financing for domestic M&Aactivities and the explorations on improving our M&A financing mechanism have importanttheoretical and practical significance.Firstly the current situation of domestic and foreign literature is analyzed and the basictheory of the acquisition financing is researched systematically in the paper. On this basis, analternative model of M&A and financing is established, which helps the companies to helpenterprises select the suitable financing way according to their own circumstances. Themethod of calculating M&A activity fund is developed to determine the optimal amount ofdebt and equity financing. Finally, the M&A financing differences between our country anddeveloped countries are compared detailedly. Then, this paper makes a detailed comparisonbetween China and the developed western countries merger of the financing way differentfrom government control, laws and regulations, and the investment intermediaryorganizations of the analysis of China’s m&a in financing the problems existing in the way,and put forward the solution of China’s m&a financing countermeasures to construct suitablefor China’s national conditions of reasonable enterprise merger financing mechanism.

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Research on the Effect of Structure of Corporate Governance on the Performance of the M&A

On 20/09/2013, in Agriculture, by rain

After the international financial crisis,the M&A (merger and acquisition) market is even moreactive. Financial leverage merger,management buyout,stripping and splitting means are widelyused, M&A has become one of the important means for modern enterprise to achieve rapidexpansion. With the M&A activities continue to occur, the number and scale expandceaselessly,large scale integration is increasing in some industry,but the failure of M&A andbad performance reports appeared frequently,this put forward a new research to the academia:How to evaluate the performance of merger,Which factor influence the performance? Weshould do what to improve the performance? It is worth contemplation.This paper is divided into five parts. The first part is introduction,mainly about the backgroundand significance,research ideas and methods,innovation, And review the previous researchabout the structure of corporate governance,performance evaluation and other relevantliterature,to establish a new relevance theory; The second part,respectively,Tell about thedefinition of the structure of corporate governance and M&A,then the meaning,motivation ofthe acquisition. And explain the relationship between corporate governance structure and M&A;In the third part mainly introduce China’s aerospace industry history and development; Thefourth part is the body of the paper, combine the normative and positive research,bothqualitative and quantitative research methods are used,study the corporate governance structureand the performance of M&A,conclusion its reality meaning. The fifth part is the last part ofthe article,analyze the empirical results. In summary,this paper is aiming at solve the potentialproblems of China’s capital market, which is have specific background; At last, We put forwardsome policy suggestions,and further on the relationship between M&A and the structure ofcorporate governance.

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The Case Study:Cross-regional Expansion Strategy of GAC Group

On 15/09/2013, in Agriculture, by rain

At present, China’s automotive industry exists to repeat construction, excess capacity,and the industrial structure is not reasonable. In early2009, the country has issued carindustry adjust and revitalization plan explicitly, encouraging FAW, DongFeng, SAIC,Changan and other large car company in M&A implemented nationwide. Support BJC,Guangzhou Automobile Group(GAC), Chery, Sinotruck, such as auto enterpriseimplementation of regional M&A. With the present situation of national policy and industrialdevelopment, cross-regional expansion mergers&acquisitions become automobileenterprises’ main form of development.From the start of the research background, this paper briefly describes the basic situationGAC, the GAC’s external environment and internal environment is analyzed, and thenthrough the GAC advantages and disadvantages, opportunities and threats, the paper gives thestrategic positioning of GAC and implementation choice. After the research in this paper, theGAC group faces the opportunity of car market development and policy support, but it isfacing industry excess capacity, policy, technology research and development for newinvestment limited, which is the threat of increasing investment; The GAC group has afinancial, research and development, own brand, market, a sound industrial chain etcadvantages, simultaneously also has disadvantages such as the capacity to grow, not completeproduct line; Market, brand, development and manufacturing of GAC constitutes the corecompetence; GAC group’s strategic development direction is cross-regional development;Strategy implementation is M&A; A selection object is the merger of Hunan Changfeng Cars,because the two has the capacity, products, research and development and marketcomplementary to each other.Through the above work, this study has important theoretical and practical significancefor the domestic auto enterprise development strategy formulation, implementation and theobject choice of M&A, and so on.

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The Effect of Agricultural Business’s M&A on Shareholder Wealth

On 15/09/2013, in Agriculture, by rain

In the process of agricultural modernization, agricultural enterprises take hugeresponsible of history mission. As China’s basic national conditions and the special nature ofagricultural enterprises, agricultural enterprises will be destined to develop through scaleeconomies, while in this mode, it is inevitable to seed up the process of enterprises mergersand acquisitions.Currently, academic research about mergers and acquisitions affect onshareholders’ wealth are very rich, but there is little research aim at agricultural enterprisesmergers and acquisitions, especially the methods to merge, which are how to choose mergetypes and opportunities, the researches are very few. This paper made empirical analysis ofagricultural listed company mergers and acquisitions on shareholder wealth effect, madeconclusion that mergers and acquisitions how to impact on shareholders’ wealth, enhanced thecontent of shareholders’ wealth, and Provided theoretical suggestion to company mergersand acquisitions.In this paper, the merger environment of agricultural listed companies are discussed indetails. The merger and acquisition environment is analysed and evaluated objectively.According to the conclusion of the study, the corresponding suggestions will be proposed. Theresearch object is the data of acquisition of agricultural listed companies. Using the excessreturn rate which is before and after M&A, just totally60days, reflects the change ofshareholder wealth effect. The excess return rate will be analysed comparatively though theview of a single sample and the total sample. Based on the analysis of a single sample, oneconclusion is proposed: the level of profit restrictes M&A wealth effect; though the totalsample analysis, the second conclusion is: the behavior of China’s agribusiness’s M&Ashareholders have negative effect on the shareholder wealth. On the category of datas for thefurther research, the last conclusion is: the horizontal merger makes negative influence.Based on the empirical results, the healthy countermeasures will be proposed. One ofthese is the agricultural enterprises should choose the poor condition of companies. Theenvironmental of M&A leads to lower shareholder wealth mergers, either the correspondinglegal laws and regulations, or the role of intermediary agencies can reduce governmentinterventions; the last one is the time of M&A which must be considered. Through the aboveresearch and analysis for the agricultural companies, valuable development countermeasure is provided and protects the interests of the shareholders.

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The Performance Research on Mergers and Acquisitions of Listed Companies in China

On 13/09/2013, in Management, by rain

Through the means of M&A, firms expanded their operations, concentrated capital, optimized the allocation of resources, and achieved the goal of external growth. Merger and Acquisition (M&A) is an important method to enlarge and improve themselves for companies. In order to compete with other countries, especially developed countries, China must have its domestic companies enlarged and strengthened, so it is urgent for China to form competitive large multinational corporations through drawing on the Western countries’experience and using the tactics of M&A. Currently,the researches on M&A are fruitful in China, but compared with developed countries’,we find there are still many problems to be solved not only in practice but also in theory. Therefore, obviously, the research into M&A is very important and pressing.Currently, a large number of M&A activities emerging at home and abroad rapidly expand the scale of the enterprises beyond all doubt. But whether it is true to increase revenue for the shareholders, to create benefits for companies, to bring values for the society? In the past30years, the mature markets of western carry out a large number of academic research on the effects of M&A. But in general there is a big uncertainty about the value effect of acquisitions. At present China is still in transition economy period, the development of M&A market is particularly important. Therefor it is required to strengthen the research on M&A activity. One of the key on study is whether the M&A creates value.The research on M&A performance is always a hot spot in M&A theory, but still now, Researchers have not reach a consensus in M&A performance. Because of our particular economic and social environmen, the cause of M&A is complicated,so M&A performance is not an incontestable conclusion.It’s evident for us that examining and analyzing the M&A performance of listed companies in China is necessary.On the basis of summarizing empirical studies about domestic and international mergers and acquisitions, this paper sorts out109events and109sample companies on Shanghai and Shenzhen M&A events in2008.Using Principal component analysis, samples of listed companies before and after mergers and acquisitions on a total of four years (2007-2010) were carried out the financial index analysis and the empirical testing, then obtained the composite score for each sample every year. Through comparison of the composite scores, I draw the following conclusions:the average of synthetical scores in the merger year2008have significantly increased comparing to the pre-merger year2007; One year after the merger in2009,the scores have significantly increased comparing to the merger year2008; the second year after merger in2010, the average synthetical scores decreased,but still significantly higher than pre-merger year and merger year. Indicating that the sample companies to improve business performance through mergers and acquisitions, gaining synergies may be a short-term effect, and did not allow the full advantages of M&A reflected, the phenomenon of purpose for financial statements is obvious. Overall to some extent M&A can improve companies profitability and asset management capabilities.Through the study of M&A, phenomenons like delayed reaction and overreaction reflect China’s securities market is not mature, the market speculativeness is strong, low maturity of the characteristics of emerging markets. Based on the results of this empirical study and the view of many scholars, combined with the development of the Western stock market history and development of China’s securities market, this paper views that the current improving the performance of listed companies M&A in China can be considered in two ways:one proceeds from the market rules establishment, improvement and supervision; the other hand proceeds from the concept transformation and improving the quality of the government, listed companies, investors, market intermediaries, the media and other market participants. Specifically put forward four targeted proposals:First, improving the legal system, regulate M&A behavior; Second, optimize the design of mergers and acquisitions; Third, do all we can to develop M&A intermediaries; Fourth,strengthen the M&A integration; Fifth, give full play to the supervisory role of the media to reduce the degree of information asymmetry; Sixth, standardize the government action in mergers and acquisitions.

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The Research of Human Capital Valuation Assessment in Merger and Acquisition

On 13/09/2013, in Management, by rain

With the advent of the era of knowledge economy, human capital replaces material capital gradually and becomes an important factor in the business value creation. The focus attention of mergers and acquisitions is from tangible assets to intangible assets, especially human capital. China’s M&A activity is more and more actively in recent years, but the assessment of human capital has not been given sufficient attention, resulting in huge loss of human capital and also makes the enterprise value is not fully reflected in the M&A, which causes a negative impact of merger integration and management. Therefore, the assessment of human capital valuation in M&A needs to attract enough attention and become an urgent theoretical and practical issue.Based on the lessons from the related research, this paper carried out a series of research of human capital valuation assessment in M&A. First analyzed the role and impact of human capital in M&A, and pointed out its importance; subsequently build an assessment model which divides the human capital valuation of M&A into two parts, which proposed a quantitative model and theoretical model respectively:finally, analyze the M&A case of Media and Little Swan using the model.The paper did useful exploration of human capital value assessment in theory and methods, aiming to enrich the valuation method of human capital in M&A and bring attention and effective use for human capital, so that people consciously formed the consciousness of respect for talent.

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Research on Cultural Integration after Mergers and Acquisitions

On 10/09/2013, in Management, by rain

With the accelerated process of globalization, as corporate efforts to achieve their own growth,mergers and acquisitions have become an important means for enterprises to expand their markets andimprove competitiveness. In recent years, mergers and acquisitions involved in the industry, region and sizebetween domestic and foreign enterprises continues to expand, but in many merger cases, the real successof the proportion is not high.For the failure of M&A, the theory community has basically reached a consensus: in a large extent,M&A success or failure is closely related to the post-merger integration, and cultural integration is a keyfactor restricting the M&A success or failure in many of the integration of content. As an intrinsic guidingforce of corporate behavior, when two different corporate cultures suddenly meet and be fused, it is boundto cause all kinds of conflicts, thus affect the success of mergers and acquisitions. So how through effectivecultural integration measures to eliminate cultural conflict due to cultural differences, reduce acquisitioncosts, and improve the M&A performance is an important issue among the M&A wave of mergers andacquisitions needed to address.The core of this study is the cultural integration after mergers and acquisitions. On the basis ofdetailed review of the past research on mergers and acquisitions and corporate culture, we conducted asystematic review of the research of cultural integration. The corporate culture in the post-mergerintegration is the integration between different cultures, and the different nature of cultural integrationbetween the primary facing the problem is cultural conflict. Can be said that cultural conflict is animportant antecedent to affect post-merger cultural integration, and so cultural conflict is a priority of thestudy. Fundamentally speaking, post-merger cultural integration is a process on the basis of in-depthunderstanding for each culture, fully understand the cultural differences between the two sides, andaccording to the vested interests of the M&A bilateral economic and strategic aspirations throughappropriate cultural integration ultimately achieve both cultural coordination configuration. It’s the endresult is the generation of a new corporate culture. Generally, there are four phases in the process that arethe period of the exploration (in-depth analysis, looking for cultural fit, and to develop integrated programs), the period of the impact (the implementation of integration programs), cultural coordinationin the run-in period (integrated coexistence, mutual integration process), the period of expand (the newcorporate culture).To validate the above theoretical analysis, by reference case, the real M&A cultural integrationprocess and the steps is specific analyzed.

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