Performance of Listed Companies after Merger & Acquisition in Medical Industry / 中国药房

ABSTRACT

OBJECTIVE:To evaluate the subsequent performance after the merger & acquisition (M&A) in the form of cash in medical industry during 3 years from 2000 to 2002.METHODS:Base on the financial data of the merging party and by means of principal component analysis and factor analysis,a scoring system was built for the evaluation of the performance of M&A so that the comparison of effect scores before and after M&A could be realized.RESULTS:The effect scores fluctuate dramatically after M&A,but finally reverted to the initial level before M&A.CONCLUSION:M&A in the form of cash failed to bring long-term profits to the entire medical industry.