Empirical Study of Cross-Regional Mergers and Acquisitions Performance of Chinese Enterprises

The paper study 68 enterprises completed the cross-regional mergers and acquisitions in 2005 and 2006. this paper select ten financial indicators from profitability, solvency, operational capacity, development capacity and cash flow in five areas, and use factor analysis means to calculate composite scores. Then comparing the M&A performance before two years of mergers and after three years of merger, conclude that the performance of cross-regional M&A stagger between rising and falling, and in general, the cross-regional M&A does not substantially improve or reduce the enterprises performance.