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Study On The Merger And Reorganization Of Chinese Coal Industry Impact On The Sustainable Growth Of Enterprises

Posted on:2014-12-24Degree:MasterType:Thesis
Country:ChinaCandidate:Z B ShiFull Text:PDF
GTID:2269330428960730Subject:Accounting
Abstract/Summary:PDF Full Text Request
Since government issued guidance in adjustment of the layout and structure fornational enterprises in2006, enterprises especially resource-based enterprises in ourcountry implemented a round of mergers and acquisitions. The government calls ourresource-based enterprises to implement mergers and acquisitions to achieve the sustainedand healthy development of resource-based enterprises.Research methods: This paper adopts empirical research and financial analysis,combining theory with application and comparison analysis methods, starting from thecurrent research to analysis the impact of merger and reorganization of enterprisessustainable growth. In this paper, through the collection of listing Corporation in China’scoal industry M&A information, using empirical research methods to analyze these data,we study these listing Corporations after M&A. Firstly, we study whether the enterprisesustainable growth ability is enhanced and whether M&A is conducive to enhance thedevelopment potential of coal enterprises. Secondly, this paper adopts empirical researchfor the development of the enterprise after the merger to analysis whether the developmentof enterprises is appropriate and whether corporations have the problem of development toofast or too slow. Finally,this paper uses the financial analysis methods to analyze thefactors influencing the enterprise sustainable growth rate. By comparative study, we obtainconcern which should be completed in the development of the enterprise M&A.This paper is divided into five chapters, and the research content is as follows.The first chapter is preface. This part mainly explains the research background andsignificance, the research content and the method and the innovation point of this article.The second chapter is research status. Through summarized the research present of M&A, the effects of sustainable growth research present situation as well as the acquisitionof sustainable growth, the research of this paper can be more scientific and rigorous.The third chapter is an overview of enterprise merger and reorganization and thesustainable growth theory. This part introduces the meaning and strategic significance ofmerger and reorganization, effects of sustainable growth of enterprises, financial models toevaluate an enterprise sustainable growth and effect of M&A of enterprises sustainablegrowth.The fourth chapter is an empirical study of Chinese coal industry. Since this research isbased on the perspective of Chinese coal industry, this part firstly statement the situation oflisted coal enterprises after M&A. Then it conducts the empirical research on sustainablegrowth ability of merger and reorganization of enterprises. The empirical study includes research design, the selection of indicators and definitions, sample selection and empiricalanalysis of merger and reorganization of enterprises growth. The empirical study mainlyconcerns on enterprises’ sustainable growth before and after M&A during year2007to year2010and whether enterprises achieve sustainable growth after M&A. Finally, this partinvolves analysis of influenced factors of enterprises’ sustainable growth after M&A. Thispart mainly uses the financial analysis methods to investigate the four main factorsconstituting the sustainable growth of enterprises in order to find out the existing problemin Chinese coal listing corporation after merger.The fifth character is development proposals for coal enterprises after M&A in ourcountry. First of all, according to the empirical study in the fourth chapter, this chapterconcludes the research findings. Secondly, this chapter put forward management measuresfor the enterprises whose development growth is insufficient or excessive after the merger.Aiming at the coal enterprises’ existing development problem after M&A, it put forwarddevelopment proposals in the future. This part provides references for enterprises in otherindustries which have nationwide merger and reorganization by recommendations based onthe development of coal enterprises in China. Finally, the paper summarizes thedeficiencies in this study and the future research direction.This study’s conclusion is as follows. Through selecting financial data of listingcorporation’s empirical study, this paper found that the enterprise’ sustainable growth abilityhad improved significantly after M&A. But effect from the merger and reorganization topromote enterprises’ sustainable growth is not significant. In view of our country coalenterprises’ growth is insufficient or excessive growth, this paper presents the managementrecommendations. When the growth of enterprises is excessive, the enterprise can increasethe equity capital, expand the debt scale, divest non-core business, seek outsourcing orannex to make up the fast growth of the fund gap for the pursuit of sustainable development.When the enterprises’ growth is insufficient, enterprises can promote the development ofenterprises through management policies and incentive measures.The paper is based on the coal industry listing corporations occurred merger andreorganization during2007to2010as the object of study. It studied the effects of themerger and reorganization of enterprises on sustainable growth, and studied the growth oflisting Corporation of China’s coal industry after merger and reorganization preliminary.Based on Chinese listed coal industry research data, this paper found that the enterprisesustainable growth ability is improved after merger and reorganization, but the effect ofmerger and reorganization on enterprises to promote sustainable growth is not significant.In view of our country coal enterprise growth are insufficient or excessive growth, thispaper suggests the enterprise management recommendations. When the growth of enterprises is excessive, enterprises can obtain enough money investing to business to get asustainable development in following ways. They can increase the equity capital andborrowing; outsource the non-core business, or seeking mergers. When the enterprisegrowth is insufficient, the enterprise can manage policy and make incentive measures topromote the development of enterprises.This paper also analysis four factors of sustainable growth through financial analysisand find problems of China’s coal industry after merger and reorganization. Aiming at theseproblems, the paper put forward seven proposals for reference in the future management. Enterprises in the future operation should be more aggressive when it is suitable for theimplementation of the merger and reorganization of enterprises. Managers should strip thenon-core business, adjust the enterprise’s financial policy, improve the enterprise assetturnover, strengthen enterprise cost control, innovate financial management method anddevelop talent strategy.The innovation of this article is as follows. This paper mainly studies the differencein sustainable growth of enterprises from the angle of before and after M&A. In previousstudies, most are starting from the performance perspective, resource integration. Thispaper selects the sustainable growth ability as the angle to study on the effect of merger andreorganization of enterprises sustainable growth ability. Angle has certain innovation. Inaddition, the coal industry reshuffle is of great significance to our country. Based on therelated national policy of mergers and acquisitions of coal industry, the paper is of greatpractical significance for the further implementation of the national policy implementation.
Keywords/Search Tags:Merger, Recombination, Sustainable growth
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