Research On The Financial Performance Of My Country's State-owned Enterprises' Mergers And Acquisitions Of Private Enterprises

Since 2017,affected by trade war,deleveraging and other factors,the A-share market has declined sharply,and A large number of private listed companies are on the verge of bursting their stocks.At the same time,the tightening of external financing environment further aggravate the risk of capital chain rupture of private enterprises.At that time,state-owned enterprises frequently purchased private enterprises,which became a beautiful scenery in China’s capital market.In such a context,there is still room for research on whether the acquisition of private enterprises by state-owned enterprises can bring positive financial performance to state-owned enterprises.Firstly,this paper reviews the domestic and foreign literature on M&A motivation and M&A performance,defines the concepts and theoretical basis of M&A,and expounds the research methods of this paper,namely event study method and EVA analysis method.Secondly,this paper makes statistics and analysis of many cases of state-owned enterprises merging with private enterprises in 2018-2019.According to the characteristics of the acquirer and the acquirer,the relatively representative case of Jiangxi Copper merging with Hengbang Stock is selected,and the basic situation of Jiangxi Copper and Hengbang Stock as well as the merger and acquisition process are elaborated.Thirdly,this paper analyzes the motivation and performance of Jiangxi Copper’s merger and acquisition of Hengbang.The motivation mainly includes policy motivation,market motivation and performance motivation.The event study method and EVA analysis method are used to test the long-term and short-term financial performance of Jiangxi Copper,and it is found that the financial performance is not obvious from the short-term and long-term perspective.Through the financial index method,the financial ability of Jiangxi Copper is analyzed from the four aspects of profit,operation,debt repayment and growth.It is found that the acquisition of Hengbang shares has significantly improved the profitability of Jiangxi Copper.Through the questionnaire survey,the paper analyzes the problems existing in the process of state-owned enterprises merging with private enterprises,and puts forward countermeasures and suggestions from three aspects,namely,making clear the target of merger and acquisition,attaching great importance to debt repayment risk and strengthening the integration of resources,combined with the results of case analysis.It provides some reference value for the theory and practice of state-owned enterprises merger and acquisition of private enterprises in the future.