Research Of The Finacial Resources Intengration In Central Government-run Enterprises Restructuring

With our country economy constantly developing, the globalization dramaticallyaccelerating, competition between corporations, especially between multinationalcorporations and between native corporations and multi-corporations, is becoming moreand more intensifying, under which, our native corporations are undertakingcompetitive pressure from many aspects. Under such a reality, therefore, corporationsmust enhance their own economic strength, to get unbeaten in fierce competitioncircumstances. Corporations ought to scale up, occupy more market share, and there aremany methods to reach this goal, M&A (merger and acquisition) is an effective way. So,it is essential for corporations to fully understand the related knowledge of merger andacquisition, so that it can offer a more favorable environment for corporation furtherdevelopment, which highlights the significance and importance of researches into M&A.In M&A process, the integration of financial resources is one of the important links,which determines whether the corporation financial effect can be realized or not, eventhe success or failure of mergers and acquisitions. Under our national institutions,state-owned corporations play a very important role in our national economicdevelopment. corporations owned by central government, as a part of state-ownedcorporations, whose significance is self-evident, whose expansion and strengthening hasprompted the whole economic development, can not only improve the operatingefficiency of our national economy, but also to certain extent, raise our national assets’value, finally promote the development of the whole national economy. Therefore,strengthening the integration of financial resources of central government-ownedcorporations, and enhancing the market competitiveness of central government-ownedcorporations become increasingly important. Through the analysis above, this articlefocuses on restructuring of the financial resources integration of centralgovernment-owned corporations, and respectively explicit related theory about merger,acquisition and reorganization of corporation and financial resources integration,combined with the cases of central government-owned corporation restructuring,analyzes and discusses how to apply this theory into national practice.This paper mainly adopts normative research method, case analysis researchmethod. Firstly, merger, acquisition and reorganization of corporations and financialresources integration theory are stated, and the paper explores analyzes issues about the practice of the merger, acquisition and reorganization of restructuring financialresources integration of central government-owned corporations, to combine the theoryand practice closely. Based on the overview of the situation of the merger, acquisitionand reorganization between central government-owned corporations, the paperdescribes the problems that exist in the central government-owned corporationsrestructuring of financial resources integration, and then reveals the reasons hidden inthese problems, then draws out the case of China Aluminums Group (CAG) mergering and reorganization of Fushun Aluminum Plant, analyzes and assesses financialresources integration program in CAG merging. Finally, based on the cause of theproblems and combining with the case above and its analysis, the paper gives somesuggestions. The general idea of this paper is firstly to put forward the existingproblems, and then to analyze the cause of the problem, and finally to giverecommendations to solve the problem.The frame structure of this article is: through the analysis of current status of thecentral government-owned corporations restructuring, the paper reveals the problemsexisting in financial resources integration between central government-ownedcorporations, and analyzes problems and combining the practical case of centralgovernment-owned corporations restructuring of financial resources integration, givescorresponding suggestions. This article is composed of five parts, the first part is theintroduction, mainly elaborating the topic selected background and significance, as wellas the overview of the researches on corporation restructuring and financial resourcesintegration at home and abroad, briefly outlines research methods and the basicframework of this article; The second part narrates the content, principles and differenttypes of financial resources restructuring and M&A, as well as its concept, features,concrete content; the third part is to analyze the problems and its causes of merger,acquisition and reorganization, the analysis of the causes of the problems, and points outthe such current problems that do not form the core competitiveness of corporations,lack of substantive and material progress, do not eliminate competition in Groups, thereis inefficient systemic backup after financial resources integration after reorganization,and concludes that the problems rooted in neglecting the integration of intangiblefinancial resources, difficulties to coordinate personnel which leads to in substantiveprogress, improperly setting out and implementing strategy target resulting competitionbetween the same group, insufficient experience of M&A of managers resulting lack of system, and inappropriate intervention from government into M&A, etc. The fourth partis about case analysis, the paper analyzes the concrete measures of CAG after itsreorganization of financial resource integration, and evaluates the effect of the financialintegration; The fifth part is recommendations to improve the reorganization of financialresources integration, combining with the problems existing in centralgovernment-owned corporations’ integration of financial resources and its causes, aswell as the case in the fourth part, puts forward some suggestions: to strengthen theintegration of intangible financial resources, strengthen the cultural construction ofcorporation after restructuring, to formulate correct and clear merger integration strategy,to improve the research into the problems in financial resources integration, to exertrationally the role of the SASSC (State-owned Assets Supervision and AdministrationCommission of the State Council). The paper hopes to offer some theoretic support andempirical assistance for financial resources restructuring between corporations ownedby central government.