The Research On M&A Performance Of Iron And Steel Enterprise In Our Country

Under the tide of the International Iron and steel enterprises’ transnational mergersand acquisitions, Chinese iron and steel enterprises also began to accelerate their pace ofacquisition and integration with the national industrial policy push since from2005.However, In recent years, data have shown that the industry concentration degree ofChinese steel and iron industry went into decline. Chinese iron and steel enterprises’mergers and acquisitions has developed more than ten years, during these years, mergersand acquisitions failed to make Chinese iron and steel industry more competitive, instead isthat the effect of mergers and acquisitions Contribution to industrial concentration indexlower and lower. At present, our iron and steel enterprises are facing the problem of Hugelosses. For this reason, this article research on the performance of Chinese iron and steelenterprises’ mergers and acquisitions.At first, we study on the problem starts with thecurrent situation of the development of Chinese steel industry，building the evaluationsystem of M&A performance on the basis of analyzing the motivation of domestic ironand steel enterprises’ M&A, At the same time, Combining with the Shandong iron andsteel group’s M&A events for specific analysis. By investigating the dynamics, process,and the change of enterprise performance before and after the group’s M&A, We foundthat iron and steel enterprises have more shareholder wealth just a few days prior to theannouncement, but with the completion of M&A, this kind of phenomenon graduallydisappeared. The financial performance indicators of Shandong iron and steel group alsopresent changes consistent with shareholder wealth index.That’s to say, just have M&Acompleted, financial performance indicators rapidly back to the previous level the previouslevel. However, the group’s non-financial indicators perform completely different with theformer two, non-financial indicators clearly indicates that the market competitiveness ofenterprises have been improved. This suggests that the prospect of mergers andacquisitions of Chinese iron and steel enterprises is promising. The low efficiency of ouriron and steel enterprises’ M&A is just due to lacking of the integration of the coreresources and business.