Performance Analysis Of Addax Company In Sinopec

In the context of economic globalization, many companies in the world aregrowing up through mergers and acquisition and capital operation. Has become animportant form of enterprises to invest in foreign counties and expand the market.And also is considered to be a shortcut of enterprises to realize international business.In recent years, the Chinese enterprises transnational M&A is growing. Andthere are many famous Chinese enterprises transnational merger cases. However, theChinese capital market is lack of effectiveness and the development of Chinese capitalmarket is not mature enough. The mergers and acquisitions of listed companies iswith strong speculative, which makes people concerned about the performance ofM&A very much. For the cross-border impact on enterprise performance, my studywas to explore the two problems: Firstly, will the Cross-border mergers andacquisitions of listed companies can improve enterprises’ performance and increaseshareholders’ wealth? Secondly, how long the improvement of enterprise performancecan last?As the world’s largest developing country, China is in huge need of energy.China’s domestic oil reserves fundamental can’t satisfy the domestic consumerdemand.2008is an unusual and extremely difficult year for Sinopec Company. Theinternational oil prices rising and plunged suddenly, domestic oil prices upside downfor a long time, and the sudden drop in demand have made the business in trouble. Inthis case, China petrochemical group， the wholly-owned subsidiary of Chinapetroleum co., LTD., has carried on the cross-border to Swiss Addax Oil Company.This is a successful case of China’s listed company in the cross-border M&A history.This article selects the Sinopec Company M&A in Swiss Addax company as ancross-border M&A cases for empirical research.First, this paper introduces the related theories of cross-border M&A and the casebackground.on the basis, use the application SPSS19.0software to analyze the13financial indicators factors of the M&A sample. According to the comprehensivescores, we compared the M&A party’s performance before and after the M&A. Thenuse this to illustrate if the M&A could promote the enterprises’ performance. UsingVAR model with two variables：The comprehensive score and share price, to do theimpulse response analysis. Through the analysis, the paper explores how long theinfluence which the M&A activity do to the enterprises’ performance can last.Draw a conclusion from two empirical research: M&A activity will do negative impact to M&A party’s performance in4periods②，then positive impact fromperiod4to period8，at last reach the maximum positive impact at period8. In thelong term, M&A activity impact on enterprise performance will last about12periods.The influence after period12will be no longer significant.The previous research of the Sinopec M&A case is mainly about the acquiredparty.this paper is studying the influence the M&A activity would do to the M&Aparty’s performance, it is relatively new on the research Angle of view. And thispaper is doing research with VAR model on the basis of factor analysis, so it hascertain innovation on the research method.