Study On The Impact Of Internal Control To The Performance Of Mergers And Acquisitions Of Chinese Coal Enterprise Listed Company

With the development of the coal industry merger and acquisition(M & A) integration, coal enterprises are faced with many risks. The increasingly sophisticated internal control system can reduce the risk of mergers and acquisitions, especially under the background of the SFC and shareholders’ growing concern of the internal control information disclosure, an empirical study the impact of internal control on the M & A performance of the coal enterprises listed companies, and revealing the impact of internal control five elements to the M & A performance has important theoretical and practical significance, which can strive to improve the performance of the coal industry merger integration.The thesis takes the coal enterprise listed companies M&A events as the research objection which happened between 2008 and 2012. On the basis of comprehensive review related research and theory home and abroad, taking the relationship between internal control and performance of the coal enterprise mergers and acquisitions as the main line, the thesis analyses the level of the internal control of the coal listed company to the M&A performance. The internal control information disclosure and the internal control index are described as the internal control level. According to the internal control conception drawn up from the Internal Control Standards, the thesis analyses the internal control mechanism of coal listed company merger and acquisition, in order to conclude the five elements of internal control and its influence on the performance of M&A activities, then gives suggestions for the improvement of the coal enterprise M&A performance.On the basis of theoretical analysis, through the factor analysis on the coal enterprise listed companies’ integrated performance of the mergers and acquisitions which separated in the year of M&A, before the M&A and one year after M&A. At the same time, the coal listed companies’ internal control information disclosure is compared. From two aspects of the internal control information disclosure level and the five elements level, the thesis discusses the influences on the performance of M&A through the empirical analysis. At last, it draws the following conclusion: the overall level of internal control information disclosure aspects: internal control information disclosure of the coal listed companies has significant positive correlation with the coal enterprise performance of M&A, which means the coal listed company has higher level of internal control information disclosure, the performance of M&A will be higher; From the five elements of the internal control aspects: Control environment and the performance of coal listed companies’ M&A has significantly positive correlation; Risk assessment has positive correlations with the M&A performance, but not significantly; Control activities and the performance of coal listed company M&A is significantly positive correlation; Information and communication has significantly positive correlation with the performance of coal listed company M&A as well; while Monitoring fails to pass the test of significance. And we study the impact of internal control overall level to the M&A performance of coal listed companies with the DEA method, and get the same conclusion: the internal control can improve the M&A performance.Through theoretical analysis and empirical research, we provide the following recommendations for the coal enterprises listed companies: pay more attention on the Control environment、Control activities、Information and communication in the process of mergers and acquisitions; improve the Risk assessment and Monitoring mechanism; strengthen the internal control information disclosure system of coal listed companies; improve the coal enterprises listed companies’ internal governance structure and management mechanism, strengthen the independence and effectiveness of the board of directors and board of supervisors; reduce the intervention of local government in the process of coal enterprises’ M&A activities.