On M&A Forecast Model of Target Firms Basing on Chinese Listed Companies

Author

Yang, Cai ; Haifeng, Ma

Author_Institution

Bus. Sch., Huaihai Inst. of Technol., Lianyungang, China

Volume

2

fYear

2009

fDate

26-27 Dec. 2009

Firstpage

10

Lastpage

13

Abstract

The paper selects listed companies which were merged or acquired in 2005 as the empirical samples, chooses 24 specific indexes related to financial condition and governance structure of firms. Then the logistic regression analysis is used to establish one forecast model with 73.6 percent general accuracy basing on success rate and another with 75.3 percent general accuracy basing on M&A performance. The study shows that the company with good governance structure, favorable government efficiency, but mired in short-term operation difficulties is apt to become M&A target; furthermore, the operation revenue growth ability of target firm before M&A has positive effect on M&A performance.

Keywords

corporate acquisitions; forecasting theory; logistics data processing; regression analysis; Chinese listed company; M&A forecast model; financial condition; governance structure; logistic regression analysis; operation revenue growth ability; short-term operation difficulty; target firms; Cities and towns; Companies; Corporate acquisitions; Information management; Innovation management; Logistics; Marketing and sales; Merging; Predictive models; Technology forecasting; M&A performance; forecast model; listed company; success rate; target firm;

fLanguage

English

Publisher

ieee

Conference_Titel

Information Management, Innovation Management and Industrial Engineering, 2009 International Conference on

Conference_Location

Xi´an

Print_ISBN

978-0-7695-3876-1

Type

conf

DOI

10.1109/ICIII.2009.160

Filename

5369195