Performance Of China’s Steel Listing Enterprises Restructuring Merger And Acquisition

Merger and acquisition(M&A)is the main way of adjusting the industrial layout and optimizing the product structure. In the face of rapid development of global economy,China’s market system is gradually improving,At the moment iron and steel enterprises of China ushered in a wave of M&A.Due to mergers and acquisitions itself with diversity and complexity,coupled with the diversity and complexity of China’s iron and steel enterprises,aggravate iron and steel enterprises M&A difficulty.In this context, the M&A of iron and steel enterprises generally occurred in China, it can change the low concentration degree of our country iron and steel industry, the unreasonable product structure, the behind the excess capacity, and whether it can improve the performance advantage of iron and steel enterprises in China, the research of these problems has very important significance.This paper first reviews the research of M&A performance of Domestic and foreign scholars, and then organizes and analyzes the related theories of enterprise M&A, and on this basis, expounds the motivation and the status of China’s iron and steel enterprises M&A, finally, uses the method of event study and financial analysis,taking empirically research on long-term and short-term performance of M&A of listed companies of China’s iron and steel from 2008 to 2011 years. The event study method measure the performance of China’s iron and steel listing enterprises by the average abnormal return rate(AAR) and cumulative average abnormal return rate(CAR), results show that the performance of M&A of China’s steel listing enterprises is not obvious, the target enterprises performance is more obvious than acquiring enterprises performance; In the same set of samples, this paper selects 11 financial indicators of measuring corporate performance, using factor analysis method measure performance of M&A of our country steel listing enterprises, the results show: it is decline the performance of M&A a year and one year after of China’s steel listing enterprises, two years after the performance rise, but still low than the performance before M&A. The performance of M & A is not ideal, there may be several reasons:improper government intervention, enterprise blind expansion and integration of lagging of M&A, result in the low performance of M&A.In the end, this paper puts forward the following suggestions for the analysis and current situation of M&A restructuring of China’s iron and steel listing companies.First, use appropriately the market role in promoting, avoid blind M&A; Second, use appropriately the enterprise M&A reorganization and integration effect and avoidM&A failure; Third, reasonable grasp the scale economy, avoid blind expansion;Fourth, encourage strategic M&A, raise industry concentration degree; The fifth,optimize financing way, improve the legal system.