The Impact Of The Establishment Of Industrial M&A Funds On The Performance Of Listed Companies In My Country

Under the background of the new normal and the slowing economic growth,domestic enterprises face the challenge of conversion of new and old energy.The quality of consumer demand has improved.the enterprise,as the supply side,can only retain customers with upgraded products and services.Therefore,industrial upgrading has become the inevitable choice for enterprises to maintain their existence.To adapt to the changing situation,some listed companies set up industrial mergers and acquisitions funds through the joint PE institutions aim to take advantages of professional abilities.Advantages include expansion of the industrial chain,promotion of asset restructuring,or transformation to emerging industries.During this period,some companies have been very successful,another has fallen into various disputes.To understand the causes of their success and the lessons of failure,this paper chooses a topic that the establishment of China's Industrial Merger fund has an effect on the listed companies' performance.In the evaluation of the company's short-term performance,this paper uses the event research method.In this paper,we analyze the trading volume,turnover rate and stock price fluctuation in short time before and after disclosure of Merger fund announcement.By estimating the parameters of the model with the data of 90 days before the event period,a linear regression prediction model is established.And the model is used to accurately measure the excess yield and accumulative excess yield of Han-leaf shares in the event period.In order to further improve the accuracy of the model,this paper chooses to remove outliers from the predicted data and readjust the model.In the evaluation of the company's long-term performance,this paper uses the financial analysis method and the economic value increment method.By comparing the company data from 7 years before and after when the company announced the news to do empirical research.In financial analysis,profitability index,solvency index,operational ability index and development ability index are used as the measurement indicators.Variables such as net operating profit after tax,total adjusted capital and weighted capital cost are selected in the calculation of EVA.Through the research and analysis,this paper concludes that the listed companies to set up industrial mergers and acquisitions funds in a short term can bring investors a good news,so that the turnover increased,the share price rose.In the long run,by cooperating with PE professional investment institutions,listed companies can give full play to the resources superiority of both sides,form synergy effect,increase enterprise value and create profit for shareholders.But this process of improvement takes some time,because extending the industrial chain,adjusting the industrial layout,and the exit of the investment project is a slow process that requires the continuous operation and cultivation of the staff.