Research On Value Creation Of Horizontal Merger And Acquisition Of Central Enterprises Under The 'Going Global' Strategy

In line with the implementation of the national development strategy of 'going global'of Chinese enterprises,the State-owned Assets Supervision and Administration Commission(SASAC)promoted the 'mega-merger' of large-scale central enterprises since 2015,setting off a new wave of central enterprises' mergers and acquisitions.However,behind the booming development,it is accompanied by risks and hidden concerns.There are also different voices in the horizontal mergers and acquisitions of central enterprises.They have been questioned for 'big but not strong','not enough for deep resources integration' and 'lack of international competitiveness'.Many people have such doubts:In the real economy,what is the effect of the 'mega-merger' horizontal restructuring of central enterprises?As the forerunner of this round of central enterprise restructuring,the case of CSR-CNR has completed restructuring work for many years and has the value of in-depth research.Based on this benchmarking case,this paper focuses on the basic problem of "value creation of horizontal enterprise mergers and acquisitions under the'going global' strategy",focusing on the static result evaluation of reorganization value creation and the dynamic process system of value creation.Exploration and analysis are as follows:With regard to the evaluation of the value creation of horizontal mergers and acquisitions of central enterprises,this paper takes shareholders' equity and economic benefits as the main judgment indicators of value effect.Based on the data of the case,the short-term effect is analyzed through the event study method,and the long-term effect is analyzed through the accounting indicator method.The study found that:(1)In the short term,the value creation result is significantly positive,and the capital market is optimistic about the development prospects of the 'mega-merger' of central enterprises;(2)In the long run,the restructuring of central enterprises involves dozens of subsidiaries.Some financial indicators will decline in the initial stage of integration,but with the deepening of integration,the financial value effects will gradually emerge.Based on the past research and the discovery of the case of the CSR-CNR merger and acquisition,this paper divides the value creation process of the central enterprise reorganization into internal and external levels.Pay attention to driving force,process and effect of value creation internally and the influencing factors of value creation in the context of'going global' externally.The research finds that:(1)The value creation driving force of the 'mega-merger' of central enterprises comes from three dimensions of strategic motivation,market power and synergy.Among them,the core driving forces are central policy requirements at the strategic level,the development demands of enterprises and the external opportunities and challenges;(2)Value creation is a long-term continuous process,which is divided into 'sufficient preparation' before reorganization,'reasonable transaction' in reorganization,and 'effective integration' after reorganization.'Sufficient preparation' is the premise and choosing the right reorganization target is especially important.'Reasonable transaction' can abandon the 'balance' or 'equivalence' of the form and pay more attention to the reform and restructuring of the real business.'Effective integration' should cover the development strategy,organization and control,human resources and culture.The speed must be targeted,avoiding too fast or too slow;(3)The merger and acquisition is guided by the government so the change of financial indicators is only part of value creation.The value effect will be first reflected in the four dimensions of strategy,industry,efficiency and brand;(4)The main purpose of restructuring is to "go global",so the value creation of integration is affected by the external environment.The policy environment,international political and economic environment,and global competition pattern are the main factorsFinally,based on the research conclusions,this paper has formed 14 suggestions from the three levels of system,policy and operation,which provides suggestions and references for similar horizontal mergers and acquisitions of central enterprises in the future,and puts forward the shortcomings and prospects of this research.