Analysis On The Serial Cross-border Mergers And Acquisitions Performance Of Zijin Mining

With the acceleration of the process of economic globalization,as well as the push of China's Strategy of going abroad and the "One Belt,One Road" Initiative,The quantity and scale of overseas mergers and acquisitions of Chinese enterprises are increasing year by year,among which resource-based enterprises are the main implementers of overseas mergers and acquisitions.Through overseas M&A resource-based enterprises can make use of configurations' s resources and wider market in the world.Contributing to economies of scale,bypassing trade barriers and increasing capital flexibility and arbitrage opportunities,For the international economic pattern and China's domestic economic transformation,industrial structure upgrading will also have an important impact.Zijin mining industry is one of the typical representatives of China's resource-based enterprises to actively implement overseas M& A strategy,Since 2005,its development vision has expanded from the domestic to the global,actively implementing the "go global" strategy,To participate in global mining development,Over the past 10 years,China has successively acquired overseas mineral projects such as Norton gold mine in Australia and koluwezi copper mine in the democratic Republic of China.And cooperated with development in the worl d-class copper mines such as kamoa,the democratic Republic of Congo,The continuous merger and acquisition of overseas mining projects has laid a solid foundation for the development of Zijin mining industry.Based on the relevant theories of overseas M& A,and the existing literatures of overseas M& A and continuous M & A,To study the continuous overseas M & A performance of Zijin mining.The article is divided into five parts,the first part is the introduction,This paper mainly introduces and analyzes the research background and significance,domestic and foreign literature review,research methods and research content.The second part is the related concepts and theoretical basis,defining the related concepts of continuous overseas M & A,This paper discusses the related theories and performance evaluation methods of overseas M & A.The third part is the motivation and process of Zijin mining overseas M & A,This paper introduces the basic situation of Zijin mining company,analyzes the motivation of continuous overseas M & A,Comb Zijin mining since 2007-2017 overseas mergers and acquisitions events.The fourth part is about the short-term performance of Zijin mining's continuous overseas M & A,The cumulative excess return and the cumulative average excess return of M & A events are calculated by the event study method,In order to judge whether continuous overseas m & a events bring short-term wealth effect.The fifth part is about the long-term performance of Zijin mining's continuous overseas m & a,Using financial index method,economic value added(EVA)and principal component analysis,Comprehensive analysis and evaluation of Zijin mining continuous overseas mergers and acquisitions long-term performance.The sixth part is the conclusion and sug gestion of this paper.Through research,This paper finds that:(1)the motivation of Zijin mining's continuous overseas m & a includes obtaining strategic resources,undervaluation of target enterprises,Government's promotion and policy support,bypassi ng trade barriers four aspects.(2)in terms of short-term performance,Zijin mining's continuous overseas m & a has brought wealth effect to the enterprises.(3)in terms of long-term performance,The profitability and development capacity of Zijin mining industry has been continuously improved.Operating capacity and solvency decreased slightly within the safe range;Its economic value added is greater than zero in 2011-2017,The value of the company has been improved;Its comprehensive performance score in 2015 after its gradual improvement trend.Finally,based on the analysis of the motivation,short-term performance and long-term performance of Zijin mining,Put forward four suggestions to improve the performance of overseas M & A: make clear the strategy of overseas m & a;Rational choice of overseas M & A opportunities;Establishing the risk consciousness of overseas m & a;Pay attention to the integration after overseas M & A.