Research On Short-term Performance Of Baosteel And Wuhan Iron And Steel M&A

M&A is not only an important means of rapid growth of enterprises,but also an important art of corporate governance.M&A is of great significance for the improvement of enterprise efficiency,the optimization of resource allocation,the transformation of industry and the upgrading of technology and the healthy development of capital market.In the early 1990s,China's M&A market began to enter a high-speed development period.With the globalization of economic development,M&A has become one of the important ways to business expansion among the enterprises.M&A can not only expand the scale of enterprises in the short term,but also enable to integrate the resources of both companies through various management policies so as to enhance the performance of the company.The impact of M&A on corporate performance is an important part of M&A research.This paper takes Baosteel and Wuhan Iron and Steel Company as the research object,and takes the event research method as the main analysis method to analyze the short-term performance change of both companies during the process of Baosteel's acquisition and purchase of Wuhan Iron and Steel shares.First of all,this paper introduces the background and significance of the active development of steel industry in recent years,and the purpose and innovation of this paper.On the basis of the theoretical research of domestic and foreign scholars,the author summarizes the ways of M&A,the motivations of M&A and the evaluation method of M&A performance.Then,this paper takes Baosteel and Wuhan Iron and Steel shares as the main research object.After briefly introducing the basic situation of the merger subject and the reason and process of the merger,the paper analyzes the price fluctuating of Baosteel and Wuhan Iron and Steel before and after M&A.Analysis shows that both companies have obtained a positive cumulative excess rate of return in the short term,indicating that M&A in the short term is a success.Finally,the author summarizes the conclusion of the case study briefly,points out the limitations and deficiencies of the study,and reminds the researchers of the follow-up research.