The Prediction Research On Earnings Per Share Of Mergers And Acquisitions In Baowu Steel Group

Iron and steel industry is an important pillar industry of China's national economy.And China is a big country in the production and consumption of iron and steel.Under the double background of the global economic recession and the depressed domestic market,China's iron and steel enterprises are facing tremendous pressure to survive and develop.In this grim industry background,iron and steel enterprises in China start a intermittently cross-region and regional climax of mergers and acquisitions.It is necessary to predict the financial performance of mergers and acquisitions in China's iron and steel enterprises.In many of the financial indicators to measure the profitability of enterprises,this paper selects earnings per share(EPS)as a profit forecast target.Based on the analysis of domestic and foreign literature,the paper expounds the basic theories of corporate mergers and acquisitions and earnings per share.And it makes forecast empirical research on the earnings per share of China's iron and steel enterprises which are mergeda and reorganized as the starting point of century merger which stands for Baosteel Group and Wuhan Iron and Steel Group combines in 2016.In the process of empirical research,the first step is establishing multivariate linear regression forecast model of earnings per share which chooses listed companies that make merge and reorganization during the period of 2008 to 2012 as samples,chooses the net assets per share,net operating cash flow per share,sales growth rate and asset liability ratio as factors.The model is used to forecast the earnings per share in the five years after the merger of Baosteel and Wuhan Iron and steel.This paper also established the GM(1,1)grey prediction model to predict the earnings per share,and the results were compared with the results of the multivariate regression to test the effectiveness of the model.According to the results of the empirical analysis,this paper draws conclusions and puts forward some suggestions.