The Empirical Study of Listed Electric Power Companies’ Horizontal Merger with the Factor Analysis Model

Abstract:

Merger and acquisition is currently the mainly way of power enterprise to pursue scale effect and improve competitiveness. So it is necessary to research the method to evaluate the merger effectiveness. In this paper, the common methods are analyzed, and a new factor analysis model based on the index-system-method is established. The comprehensive score gained from the model can stand for annual comprehensive performance of the merger company; then paired t-test the comprehensive scores of two different years; finally, whether the merger caused significant performance can be known.

• Periodical: Advanced Materials Research (Volumes 204-210)
• Pages: 314-317
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.204-210.314
• Online since: February 2011
• Authors: Chong Ming Liu, Lin Wang
• Keywords: Comprehensive Score, Factor Analysis (FA), Merger, Performance

References

[1] Manne H.G. Mergers and the Market for Corporate Control. [J] Journal of Political Economy, 1965. 110～120.

[2] Ravens Craft and Scherer. Diversification's Effect on Firm Value. Journal of Financial Economics, 1987(37). 39～65.

[3] Healy P.K., Palepu R., Does Corporate Performance Improve After Mergers? [J]Long Range Planning 1998, 13, 337-346.

[4] Anup Agrawal and Jaffrey F. Jaffe. The Post-Merger Performance puzzle [M]. Advances in Mergers and Acquisitions, Stamford, CT: JAI Press, (2000).

DOI: 10.1016/s1479-361x(00)01002-4

[5] Xiulan ZHANG. An Empirical Study of M & A, [J] Enterprise economy2006（7）: 129～131.

[6] J. B. LIN The Practice Design Pumas of statistical analysis, [M] China Railway Publishing House, Beijing, 2002:. 267-291.