Research On Operational Risk Evaluation Of Zijin Mining Cross-border M & A Project

Cross-border mergers and acquisitions can help companies participate in the allocation of global resources and it is also one of the main means of securing reliable strategic resources,which can ease domestic energy tensions.Zijin Mining Company has implemented 14 cross-border M & A activities from2005 to 2016 with the strategic goal of "entering the international mining industry".But from the operation effect of its M & A project,it is not good,5 projects have been terminated.Therefore,in order to achieve its strategic goal as soon as possible,it is necessary to pay attention to the operational effect of M & A projects.Based on the above purpose,this study carries on the risk evaluation to the Zijin mining transnational merger project operation.First of all,based on the data collection of Zijin mining operation and cross-border M & A project operation,this paper analyzes the development strategy and financial statements,and knows the operating characteristics of Zijin mining industry.According to the theory of risk formation and classification,the paper uses checklist method to identify the risk of Zijin mining transnational M & A project,and obtains 5 categories and 11 risk influencing factors.According to the identified risk factors,the index evaluation system of Zijin mining cross-border M & A project operation risk is established.Then,collect the index related data,and quantify the qualitative index.In order to test the reliability of data sources and the feasibility of evaluation methods,Zijin mining cross-border M & A projects were divided into two groups,two terminating projects as test group and nine operational projects as experimental group.The entropy method is used to weight the risk factors and getting the policy risk,exchange rate risk and infrastructure risk are the main risks in the operation of Zijin mining transnational M & A project,accounting for 57.9% of the total risk.The entropy weight method is often combined with the Minkowski Distance and the grey comprehensive evaluation method to evaluate the operational risk of the project.As a test group,the risk ranking of the projects are ranked first and third,which is basically consistent with the facts and verified the reliability of data source and evaluation method.In order to clarify the overall situation of the project operation risk,the experimental group project is ranked by the principle of "serial number and sum".In order to understand the projects operation risk in different regions,the projects are classified accordding different regions.At the same time,in order to analyze the influence of risk factors on a single project,the correlation degree of the influencing factors and the project are further calculated,and the pie chart is made.Finally,according to the evaluation results,combined with the situation of the project itself,analyzes the risk factors,different regions and the reasons,and put forward the countermeasures combined with Zijin mining industry itself,and provide some feasible suggestions for Zijin Mining Company to deal with the risks in the future operation of cross-border M & A projects.