Study On Efficiency Of Vertical Merger And Acquisition Of Z Listed Company X Company

As one of the types of mergers and acquisitions,vertical mergers and acquisitions are different from other types of mergers and acquisitions because there is no direct competition between merger and acquisition companies,but they are in the upstream and downstream of the industrial chain.In short,vertical mergers and acquisitions represent the merger of suppliers and demand dealers.As a mainstream way for enterprises to integrate resources,expand their outreach,enhance their competitiveness and achieve highly profitable capital operations,vertical mergers and acquisitions are conducive to the expansion of enterprises and the implementation of vertical integration strategies,which are mainly reflected in the upgrading and rational adjustment of industrial structures.At the same time to promote the concentration of capital,to enhance the competitiveness of enterprises,is the trend of future market economic development.In the 1970 s,High purity process originated from abroad.With the development of domestic emerging technology industry,China began to introduce and develop High purity process.This kind of industry has a high degree of concentration,which not only requires excellent technology,but also puts forward new requirements for establishing good cooperation relations between upstream and downstream enterprises.But at present,the development of High purity process in China is not mature and is still in the growth period.Therefore,in the face of the development of High purity process in China,effective vertical mergers and acquisitions will help to change the industry competition pattern and improve the operating efficiency of enterprises.The efficiency problem brought by M & A events is the evaluation standard of event success.This paper summarizes the previous theoretical research results on vertical M & A and M & a performance.Based on the financial data of Z company from June 2017 to June 2019,accounting index method and event research method are used to analyze the vertical M & a performance of Z listed company X.In the research,firstly,by establishing the market model,we calculate the excess return rate of the shareholders caused by the merger and acquisition event,and analyze the positive results of the short-term merger and acquisition performance brought by the merger and acquisition event;secondly,by directly comparing the financial indicators,we use the main component factors to establish the factor analysis model,analyze the overall benefits brought by the merger and acquisition event,and get the long-term vertical merger and acquisition event of Z company Finally,through the conclusion of the vertical M & a performance of the case company,it concludes that the performance commitment before M & A is too high,the integration effect after M & A is not good and the strength is not strong,and puts forward solutions to the existing risks and problems.