Financial Synergy Effect Analysis On Merger Of China Enterprise And Zhongxing Group

With the rapid development of China's market economy,especially since the 21st century,enterprises gradually began to expand their scale through mergers and acquisitions.M&A can help enterprises expand their business scope,enhance their core competitiveness,and then maximize their value.On the other hand,it can promote the rationalization of industry structure through the allocation of resources through M&A.Therefore,mergers and acquisitions are of great significance to the development of enterprises,industries and even the whole market economy.In recent years,the frequency and amount of M&A of Chinese enterprises are increasing year by year,especially in the real estate industry.At present,China's real estate industry is in fierce competition.The scarcity of land and the limitation of capital accelerate the process of industry integration.M&A has become an important way for the sustainable development of real estate enterprises.This paper selects the typical event of real estate M&A in 2018,China Enterprise and Zhongxing group,as the research object.After introducing the relevant concept theory,industry background and the basic situation of both sides of M&A,it reviews the process of M&A and explores the motivation of M&A.Then we use the event study method to analyze the short-term synergy effect of M&A,and use the comparative method of financial indicators from six aspects of profitability,growth ability,solvency,operating capacity,expenses and cash flow to analyze the changes of various indicators before and after M&A.The analysis shows that in the short term after M&A,the shareholders' wealth of Chinese enterprises has significantly improved,and there is also a positive synergy effect in the financial indicators,so this M&A case can be said to be successful.Finally,based on the above analysis and research,we get the relevant enlightenment,and play a reference role for the similar M&A of the same industry in the future.