Economic performance evaluation model of cross border Mergers and acquisitions of Chinese enterprises based on principal component analysis

Abstract

Aiming at the problem of low evaluation accuracy in traditional Chinese enterprise cross-border M&A economic performance evaluation models, a principal component analysis-based economic performance evaluation model of Chinese cross-border mergers and acquisitions is proposed and designed. From the audit coverage rate, audit plan completion rate, audit recommendation adoption rate, actual workload to planned workload ratio, the growth rate of corporate economic efficiency, the ratio of audit fees to total costs, the communication capabilities of internal auditors, and the internal audit department’s The number of complaints and senior management’s satisfaction with internal auditing work selects performance evaluation indicators to optimize the performance evaluation system of Chinese companies’ cross-border mergers and acquisitions, and build a cross-border mergers and acquisitions economic performance evaluation model based on the static balance of corporate mergers and acquisitions economic performance. The simulation experiment results show that the evaluation accuracy of the economic performance evaluation model of Chinese enterprises’ cross-border mergers and acquisitions based on the principal component analysis method is relatively high, which provides a theoretical basis for the performance evaluation of enterprise mergers and acquisitions.