The Research On Performance Of M&A Of Petroleum Enterprises In China

As an important part of capital market resources configuration, mergers and acquisitions played an irreplaceable important role in the optimization of the concentration of capital in the enterprise and industry expansion. It is an important way to realize external growth targets, to achieve rapidly expanding in the scale of production and operation enterprises, and to promote optimal allocation of capital and resources. It is the essential way to promote enterprise scale, structural adjustment and industrial upgrade through mergers and expansion.There is a growing trend in the amount of mergers in the oil industry in recent years. However, it is impossible to ignore the risks that it goes along with. Successful mergers and acquisitions can produce higher-yielding returns to the enterprise in order to help it achieve its strategic objectives. But the reality is that the complexity and risks behind mergers and integration are high. It is of great use for us to get a more comprehensive and deeper understanding in the value effects and synergy effects of mergers in the industry. Through the study of performance, it enables enterprises to carry out reasonable capital budget. It also helps to improve the quality and efficiency of mergers and acquisitions. Eventually, it helps to promote the healthy and steady development of capital market.The methods used in the empirical are study event study methodology, financial analysis to intercept studies the sample of listed companies. Through the analysis of mergers and events, it enhances to improve the understanding in short-term and long-term performance of listed companies. Finally, to solve the existing problems in Chinese listed company mergers, the thesis proposes policy recommendations and provides guidance to merger activities in the country, with a view to evaluation of listed company mergers and acquisitions activities.Through theoretical and empirical research, the paper drew the following conclusions:in the analysis of the short-term performance, event announcements of mergers significantly increase stock price after a few days, causing positive excess cumulative rate of return. After a period of time to understand the announcement, stock abnormal excess proceeds rates return to normal levels. Long-term performance analysis of enterprise performance in the year of the mergers and acquisitions showed the level of profitability improved significantly for the degree of deterioration within 1-2 years after the merger. Overall, mergers of long-term performance show the improvements with some delay. The reasons are that in integrating mergers and acquisitions of enterprises manpower and resources are needed for a certain time, after digestion and the adjusted target of enterprises to achieve economies of scale, the enterprise’s profitability has been optimized.Overall, it is a long and gradual process for the mergers and acquisitions in China’s practice and development. Although the merger is still where there are many unsatisfactory, there is no denying that the mergers continue to be effective ways in the business development and growth and expansion. In particular from the development of long-term, performance of merges and acquisitions can significantly enhance the efficiency of production and operation of enterprises, which acquire or give a new vitality to enterprises. So, it is the eternal themes to improve the development of mergers and acquisitions gradually, which need to pay unremitting efforts.