Abstract: Abstract: Based on the enterprises resource-based view, this study proposes a new method of measuring the capability of mergers and acquisitions (M&A capability). M&A capability embodies in how enterprises transform resources into the value of mergers and acquisitions. As a result, the efficiency of the transformation reflects the enterprise’s M&A capability. The empirical study shows that data envelope analysis (DEA) can measure M&A capability. We also conduct a series of tests to check the validation of the measuring method. The OLS regression results show that the M&A capability is positively correlated with the cumulative abnormal return and post M&A performance respectively.