Study On The Performance Of Baosteel’s Merger Of WISCO

In response to the problems of overcapacity,low concentration,and irrational structure of the steel industry in recent years,the government has vigorously promoted the supply-side structural reform with "de-capacity" as the core,merger as a key measures.The meaning of the performance evaluation is important and self-evident.The thesis selects a representative event in the industry-Baosteel’s share swap merger of WISCO as the research object,which has important theoretical and practical value for the merger and acquisition performance evaluation of Chinese steel companies.This thesis comprehensively compares the advantages and disadvantages of the current performance evaluation methods,selects the balanced scorecard as the main theoretical basis,and combines the strategic objectives of corporate mergers and acquisitions to conduct a research on the merger and acquisition performance of Chinese steel companies from a qualitative and quantitative perspective.First,based on the summaries of domestic and foreign scholars’ research on the performance evaluation of corporate mergers and acquisitions,analyze the shortcomings and areas worth studying,and elaborate the relevant theories of corporate mergers and acquisitions,mergers and acquisitions performance,and the balanced scorecard method.The thesis explores that the Chinese steel industry is facing a structural dilemma of low industrial concentration and excess capacity.Mergers and acquisitions measures have played a positive role.Secondly,after sorting out the background of the merger company,the motives and the process of this event,based on the strategic goals of the balanced scorecard method,the performance evaluation index system for Baosteel’s merger of WISCO was designed from four dimensions,and the analytic hierarchy process was used to evaluate the experts’ score.The situation calculates the weights of indicators at various levels to build a performance evaluation model for Baosteel’s merger of WISCO.Furthermore,the relevant data from the year before the event to the most recent year are selected.The data from the year before the merger are used as the standard value,the average value of the data from the three years after the merger is the actual value.The difference rate between those and the performance of Baosteel during this period are combined.The qualitative analysis is made,the performance of each indicator is scored,and the weight is multiplied to get the final result of 6.12 points,which is the Baosteel’s merger performance score.Finally,through this series of studies,it was concluded that Baosteel achieved good results through the merger of WISCO,of which learning and growth dimension contributed the most.