An Empirical Study On The Performance Of Energy Conservation And Environmental Protection Enterprises In Different M&A Modes

As global energy security,ecological security,environmental security and public health and other issues have become more prominent,energy conservation and environmental protection issues have a bearing on human survival and development,and have become one of the most serious challenges facing human society in the 21st century.The energy-saving and environmental protection industry is a comprehensive emerging industry that provides technology,services and material support for ecological environment construction and resources and energy conservation.Accelerating the development of energy conservation and environmental protection industries is an objective need to alleviate the constraints of China’s resource and environmental bottlenecks.The Party Central Committee and the State Council attach great importance to it.Related departments have introduced and implemented a series of policies that have clearly defined the strategic position and development direction of the energy-saving and environmental protection industry.The increasing financial expenditure of the energy-saving and environmental protection industry has also strongly promoted the development of the industry.However,at the same time,the energy-saving and environmental protection industry in the rapid development period has problems such as irrational industry structure and weak innovation ability.The scale of enterprises is generally small,the advantages of large-scale leading enterprises are not obvious,and the industry concentration is low.In order to achieve economies of scale,market power effects,reduce transaction costs,extend the energy conservation and environmental protection industry chain and achieve diversification,a large number of internal and cross-border mergers and acquisitions have emerged in the energy conservation and environmental protection industry.Based on this,this article conducts an empirical study on the performance of energy conservation and environmental protection enterprises under different mergers and acquisitions.Based on the above background,the research in this article is based on reading and collating relevant domestic and foreign literature research,combing related concepts and motivational theories of mergers and acquisitions,and combining the analysis of the development status of China’s energy conservation and environmental protection industry.Then,put forward research hypotheses.Taking the M&A incidents of listed energy-saving and environmentally-friendly listed companies from 2012 to 2016 as research objects,they were screened according to the five selection principles,and finally 47 eligible M&A incidents were identified,involving 29 energy-saving and environmentally-friendly listed companies.Based on the research samples,this paper uses the accounting research method to establish an a performance evaluation index system for mergers and acquisitions.The system includes twelve financial indicators that can represent the four aspects of corporate solvency,profitability,operating ability and development ability.Twelve financial index data of the M&A enterprise in the year before the merger,the year of the merger,the year after the merger,two years after the merger,and three years after the merger were obtained in the Guotai’an database.Use the factor analysis method to build a comprehensive score model of corporate M&A performance,calculate the comprehensive scores of M&A performance for each five-year period of the M&A enterprise,observe and analyze the overall operating performance of energy-saving and environmental protection companies before and after the merger,and divide the research sample into horizontal mergers,vertical mergers,and hybrid mergers according to different merger models.Study the impact of different merger and acquisition models on the performance of energy-saving and environmentally-friendly enterprises.The research results found that,in the overall sample,mergers and acquisitions have a certain degree of positive effect on the operating performance of energy-saving and environmentally-friendly listed companies.Horizontal mergers and acquisitions can improve the operating performance of energy-saving and environmentally-friendly enterprises and create value for them.Vertical mergers and hybrid mergers and acquisitions can only bring short-term improvements to the operating performance of energy-saving and environmentally-friendly enterprises.In the long run,their positive effects on operating performance are insufficient.According to the empirical results,it can be known that the impact of different merger and acquisition models on the business performance of energy-saving and environmentally-friendly enterprises is different.At this stage,for the energy-saving and environmental protection industry,horizontal mergers are better than vertical mergers than hybrid mergers.A possible explanation for the research results is that the theory of scale effect and the theory of market power have been confirmed in horizontal mergers and acquisitions.Horizontal mergers and acquisitions have expanded the scale of enterprises,market forces have also expanded,market share has increased,and corporate business performance has improved.However,vertical mergers and hybrid mergers and acquisitions do not fully take advantage of the synergies of mergers and acquisitions due to the difficulty in integrating mergers and acquisitions;enterprises are excessively pursuing short-term benefits,lacking long-term strategic planning,and reporting financial mergers and acquisitions are more prominent;energy-saving and environmentally-friendly enterprises in the growth stage have limited net cash.For these reasons,under these two merger and acquisition modes,the company’s operating performance has not achieved substantial long-term improvement.It can be seen that the effectiveness of M&A integration and long-term M&A strategic planning are of great significance to M&A performance.The research results in this article can enrich the content of China’s energy-saving and environmentally-friendly listed companies’ mergers and acquisitions research.From the perspective of different mergers and acquisitions models,establish the concept of M&A performance for energy-saving and environmentally-friendly listed companies.It is beneficial for energy-saving and environmentally-friendly listed companies to provide a certain reference when choosing an M&A model and carrying out M&A activities according to industry conditions and their own circumstances.