The Empricical Study Of M&A Performance Of Listed Companies In China's Steel Industry

Whether the implementation of mergers and acquisitions of listed companies can improve their business performance effectively, this has been the focus of domestic and foreign researchers for a long time. In the empirical study, as the existence of differences in the research methods and samples, there is not an absolute solution whether M&A could improve the business performance. With the rapid development of steel industry, China's steel industry continued to accelerate M & A and ushered in a wave of mergers and acquisitions. In this environment, the study of China Steel Industry M & A Performance of listed companies is significant.This article utilizes financial indicators and factor analysis methodology to form a comprehensive evaluation model for M&A performance. The empirical study analyzes 21 listed companies in the steel industry that occurred in 2007 and studies the changes of operation performance before and after M&A and indicates some problems in iron and steel mergers and acquisitions. Then with the classification study on M & A performance and the multiple regression model, this paper analyzes the related factors including the related transactions or not, transaction size, the proportion of tradable shares, the nature of the first shareholding, and the ratio of the first shareholding, which can influence the M&A performance.The results show that:in the M & A year, short-term solvency, profitability is strong. They are decreased in a year after and remain unchanged in two years after M&A. Long-term solvency has a little change but the operating profit growth rate index changes a lot. Development capacity is strong in M & A year and goes down after M & A. Operational capabilities continues to rise in the M & A year and after a year, but it decreases after two years. The corporate performance did not increase but decrease after M & A, and the number of quality enterprises has declined in the trend. Transaction size has a negative effect on the M&A performance, while the proportion of tradable shares has a positive effect.Finally, the problems of mergers and acquisitions of listed companies in the steel industry, combined with today's national economic policy and economic situation, on the basis of empirical analysis, this paper proposes suggestions to improve the M&A performance.