| As economic growth slows worldwide,electricity demand is decelerating,so corporate growth is limited.In addition,the environmental protection policies make it even harder to improve profitability of power companies,and thermal power companies have been deeply affected.During the 13 th Five-Year Plan period,the state strongly advocated accelerating the coal cleaning projects.And by the end of2021,the pilot areas will strive to achieve a significant optimization of the capacity structure.Coal power capacity will drop by 1/4 to 1/3.In this context,many electric power companies choose to integrate high-quality resources through mergers and acquisitions（M＆A）,in order to optimize production structure and obtain fresh growth points.But should M＆A choose companies with similar resources? Is the synergy effect or the friction effect significant after the merger? The academic community believes that similar resources have a positive effect on performance,and complementary effects determine the success or failure of M＆A.But so far scholars have failed to reach a consensus on the "success paradox" of whether corporate mergers and acquisitions are beneficial to the company’s development,which is also called the "synergy paradox".The integration stage is the key stage that determines the success of M＆A,so analyzing resource integration is significant.Therefore,this article describes the relevance of resources from the perspectives of the scope of M＆A,whether they are related,and the way of M＆A.Taking Shanghai Electric Power as an example,this article analyzes the synergy and friction effects and explores the mechanism of financial performance changes during the resource integration stage,attempting to break the "synergy paradox" and provide reference for other companies.This article first reviews the research literature related to M ＆ A performance and resource connectivity,and sorts out the concepts and theories related to M ＆ A integration performance.Secondly,the process and characteristics of M＆A and restructuring in China’s power industry are elaborated.Then,an empirical study was conducted on 57 M ＆ A incidents in 35 listed power companies of China between2009 and 2017 using factor analysis.And according to the results,a classification and comparison study is carried out according to the three dimensions: the geographic scope of the merger,whether the merger is related and the merger mode,which reflects the relationship between resource connectivity and financial performance.After empirical analysis,this article draws the following conclusions:（1）On the whole,China’s listed power companies performance better,about 44% of companies can benefit from integration.Specifically,the M＆A has improved the profitability and development ability of the acquirer to a certain extent,but it has also caused the company’s financial problems.Determinism and corporate debtpaying capacity have deteriorated.（2）The performance of provincial and interprovincial M＆A in the power industry is not significantly improved;crossborder M＆A will worsen their performance in the short term,while the long-term impact is obviously positive.The performance of related party M＆A is better than the non-associated transactions.Horizontal mergers and hybrid M＆A have positive effects in the long run,while vertical M＆A have negative effects.To sum up,resource similarity will bring less risks,which may achieve other non-financial targets;resource complementarity will bring more risks,which will have negative effects on performance in the short term but a long-term positive effect.The averaging of overall financial indicators makes it easy for people to ignore individual differences.Based on industry analysis,this article selects a typical M＆A case（Shanghai power）and further analyzes the reasons for its performance to decline first and then rise.The friction effect mainly acts on the early stage after M＆A,and the synergy effect affects the later one.Finally,it puts forward countermeasures and suggestions on the M＆A of China’s electric power enterprises from the two levels of government and enterprises.The main contributions of this thesis are:（1）Verify the relationship between resource connectivity and performance and the "paradox of corporate M＆A synergies".The general comparison study only focuses on a certain property,and there are few connections between the properties.The classification and comparison in this paper are based on the relationship between the size of the resource connection.（2）Few studies on M＆A performance in the power industry have enriched the literature on M＆A performance in the power industry.Compile data on major M＆A events in the power industry over the past 10 years for factor analysis.（3）With strong practical reference significance,the power industry is facing environmental policy pressure,and how to improve financial performance is an urgent problem to be solved.This article starts from the actual problem and uses statistics + cases to explore the status of the industry and in-depth case analysis The impact mechanism of resource connectivity on financial performance.The article has the following deficiencies:（1）Only the power industry is studied,and the conclusion may not necessarily apply to other industries.（2）Only the success of the acquirers is studied,but whether the success or failure of acquired companies results in a significant difference in its financial performance is not studied.（3）The quantity of samples after excluding abnormal data and incomplete data is small.（4）The time span of M ＆ A performance evaluation is not large enough,and it is hard to evaluate the long-term performance of more than 3 years.On the one hand,the sample is insufficient;on the other hand,continuous M ＆ A performance will have mutual effects,and long-term performance cannot be evaluated separately. |
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