Empirical Analysis on the Impact Factors of Mergers Value Creation by Structural Equation Modeling

Today most studies of mergers and acquisitions are based on the performance of mergers and acquisitions. There are a lot of controversies on the factors which can affect the value creation and which one plays a major role. We investigated the impact factors of mergers value creation and built the structural model of these factors. After that, using data on 33 mergers and acquisitions between 2004 and 2005 and employ the software of SPSS18.0 to test the model, we found that the degree of integration of resources and differences in organizational culture between two corporations will significantly influence the mergers value creation. Related-party transactions the degree of changes in business direction and industry relevance will significantly influence the mergers value creation indirectly.