Research On The Impact Of "Listed Company+PE" Fund M&A On Corporate Performance

With the development of China’s economy,a large amount of capital has poured into my country’s market,and competition in the industry has become increasingly fierce.If companies want to expand rapidly,increase market share and industry status,mergers and acquisitions are one of the indispensable ways.With the increasingly active capital market,the strengthening of the market supervision environment,and the actual needs of industry integration,the "Listed company + PE" type of M&A model has gradually been gradually."Listed company + PE" M&A funds are developing rapidly in my country’s market based on an innovative model that combines financial and industrial capital.However,since this type of fund is still in the early stage of development,there are risks such as principal-agent and information asymmetry.Therefore,objectively analyzing and evaluating the impact of "Listed company + PE" funds on the performance of corporate mergers and acquisitions can maximize the strengths and avoid weaknesses and promote the development of corporate mergers and acquisitions.This article first gives a brief introduction to China Tianying,and elaborates its motivation and operation process for establishing a "listed company + PE" M&A fund,based on the synergy theory,information asymmetry theory,and principal-agent theory.Secondly,From the three dimensions of short-term performance,long-term performance,and industry comparison,it analyzes the performance before and after the establishment of Huayu M&A fund by China Tianying,and explores whether the establishment of Huayu M&A fund can improve the performance of China Tianying.First,using the event research method to explore the short-term market,the results show that AR and CAR are positive in the shortterm of the establishment of M&A funds,and the establishment of M&A funds will bring positive wealth effects to China Tianying,and corporate value will be improved to a certain extent.Secondly,the use of traditional financial indicator analysis and factor analysis to explore long-term financial results shows that after China Tianying established the Huayu M&A fund,the operating ability,profitability and growth ability have improved significantly,but the debt solvency has declined,and the comprehensive financial ability has been reduced.The value has improved to a certain extent.Finally,from the perspective of industry comparison,the EVA value and EVA rate of environmental protection companies that set up this type of M&A fund are calculated.The study found that environmental protection companies have improved their company value to varying degrees after setting up a "Listed company + PE" M&A fund.In general,China Tianying has steadily improved both short-term and long-term company performance after completing the merger of URBASER through the establishment of Huayu M&A Fund.The establishment of a "Listed company + PE" fund to achieve mergers and acquisitions is one of the effective ways to achieve strategic expansion for listed companies.At the same time,it is necessary to pay attention to the entrusted agency risks and increase the cost of mergers and acquisitions.For this reason,this article suggests that listed companies should choose appropriate PE institutions,establish reasonable PE incentive mechanisms,and adopt measures such as "cash + shares" to repurchase shares.Maximize the use of financial institutions to steadily realize corporate transformation and development.