The Research On Performance For The M&A And Restructuring In Chinese Iron And Steel Enterprises

M&A and restructuring is the important means to optimize resource allocation, promote industrial structure adjustment, eliminate excessive competition between enterprises and enhance enterprise scale economic benefit. In the past30years, the M&A and restructuring of listed companies was made extensive research by the world economic and financial experts, and one of the key issue was whether the value of the listed company was created by M&A and restructuring? At present, the stock market in our country develops increasingly, and the M&A and restructuring between steel enterprises are more and more fast. However, the research about the performance of M&A in our country is still in the primary stage, and the study is also to be deeply. Therefore, it has important practical significance to research on performance for the M&A and restructuring in Chinese iron and steel enterprises.In this paper, we chose the steel enterprises as the sample in2004-2006years, which has characteristic with M&A and restructuring. The event study method was used to calculate CAR (cumulative abnormal return) to weigh whether raised Chinese steel enterprises value, whether bring wealth effect for shareholders by M&A and restructuring. Accounting method was used and we chose some accounting index to measure the change of operating performance after M&A and restructuring. Finally I reached some conclusions:the Chinese steel target companies need at least2years to optimize resource allocation to realize coordination effect; In the3years before M&A and restructuring, the change of earnings per share was highly consistent with the change of net profit rate, and2years after M&A and restructuring the quality of assets, the profitability have been continuously improved, so it reflects the coordination effect of M&A and restructuring; The different way of M&A has different wealth effect performance for shareholders. In ownership structure, the proportion of state-owned share was proportional to CAR, and so on.In addition, because the factors of our government’s inappropriate intervention, the structural adjustment integration is slow after M&A, local government interests’game so as to Chinese iron and steel enterprises have not got the desired effect after M&A. So we should strengthen our iron and steel enterprises’management, improve efficiency. What’s more, we should continue to deepen the enterprises equity reform, promote state stock reduction and listed circulation, according to the market economy principle, and look for iron ore price negotiations advantage. The state should provide guidance policy laws and regulations for the development and growth of Chinese iron and steel enterprises.