Research On Synergies From CRRC Merger Based On Financials And Economic Value Added(EVA)

China's economy has developed in a rapid speed in the past three decades,and the market environment has undergone a series of changes.The living environment of domestic enterprises is becoming increasingly stringent,and competition in the same industry is intensified,resulting in an imminent transformation and integration of the domestic market.The international market also contains more and more variables because of the political and other uncertain elements.In order to cope with the complicated economic situation and seek better development,many excellent large enterprises in our country have reformed the management mode and ownership structure.In the process,mergers and acquisitions gradually become the choice for more and more enterprises,and therefore bring about a new round of mergers and acquisitions wave.In order to deal with the vicious competition in the overseas market,China South Railway(CSR)and China North Railway(CNR)at the end of 2014 completed the enterprise merger,and CRRC Corporation Limited was born.However,whether the enterprise merger can really achieve the expected purpose and whether the newly established CRRC can obtain stronger operational capacity and higher overall performance on the basis of the original CSR and CNR still need for further observation.Through the relevant theories of financial index analysis and economic value added,this article firstly investigates the enterprises' situations before and after the merger,the accounting subjects and the enterprises' situations of economic value added,and then,on the basis of this,it chooses some of the above-mentioned financial indicators related to the coordination effect of business management and the economic value added value model based on the economic value added to calculate the enterprise value before and after the merger,so as to evaluate the operating synergy generated by the enterprise merger,and provide evidence for whether the enterprise merger has improved the overall performanee.At the same time,this paper uses the theory of economic value added to analyze the industry situation and the development status of the enterprises themselves,and forecast the enterprise development status of some accounting subjects by 2020.In the end,it gets revelations from the case study of CSR and CNR,explores how to play the synergistic management effect in this case,and illustrates the limitations of the paper.