Research On The M&A Performance Of Chinese State-owned Iron And Steel Enterprises

Since the outbreak of the global economic crisis in 2008,the development of China's steel companies has been declining.In the past two years,the development of the entire steel industry has been in a difficult position.Problems such as overcapacity,low industrial concentration,and unreasonable product structure have seriously hampered the development of iron and steel enterprises,and many steel companies are facing losses.In 2016,with the implementation of supply-side reforms,significant efforts have been made to eliminate production capacity,but it is impossible to fundamentally change the dilemma faced by steel companies.The combination of Baowu's strengths has given the iron and steel enterprises in dire stance a path and opened the prelude to the reform of the steel industry.From a theoretical point of view,mergers and acquisitions between steel companies can optimize the allocation of resources and complement each other's strengths.However,whether or not they can improve corporate performance in practice needs further study.In the merger and acquisition activities of China's steel companies,the state-owned steel companies have performed more prominently.Therefore,this paper takes the state-owned steel enterprises as the research object,analyzes the development environment and status quo of the steel industry,and sorts out the major mergers and acquisitions of state-owned steel companies during 2006-2016 to study the status quo of mergers and acquisitions of state-owned steel companies and their acquisitions.The model is divided,focusing on the analysis of the two major merger and acquisition models that exist in mergers and acquisitions.Establishing an evaluation index system for M&A performance of state-owned steel companies using financial indicators and non-financial indicators,and establishing a comprehensive score model of M&A performance based on the system using factoranalysis.According to M&A performance scores,the paper analyzes the M&A performance of state-owned steel companies and their performance under different M&A models,and draws the conclusion:The research conclusion is drawn: the performance of the overall M&A of the state-owned steel enterprises is poor;the combination of the government and the market M&A performance is slightly better than the government-led M&A performance,which is more suitable for the long-term development of the company.The research in this paper enriches the research on iron and steel enterprise mergers and acquisitions model to corporate performance,helps to clarify the M&A path of state-owned steel companies,helps companies to make M&A decisions that are most conducive to the realization of corporate value,and provides some reference for future merger and reorganization of steel companies.