Study On The Performance Of Zijin Mining’s Successive Mergers And Acquisitions

Non-ferrous metals are not only essential basic materials for the development of national economy,but also important strategic resources in the fields of national defense industry,science and technology.China’s non-ferrous metal industry is developing rapidly,but there are still some problems at present,such as small scale of enterprises,excess production capacity,unconcentrated industrial distribution,relatively weak technical strength,insufficient metal mineral resources and large consumption demand.In February 2009,the state issued the "Non-ferrous Metal Industry Adjustment and Revitalization Plan" to encourage non-ferrous metal enterprises to carry out mergers and acquisitions,thus kicking off the curtain of non-ferrous metal industry mergers and acquisitions.As an important means in the development process of many fields,M&A is of great significance to optimize the allocation of industrial resources,promote the adjustm ent of industrial economic structure and enhance the core competitiveness.When enterprises realize the economic benefits brought by mergers and acquisitions,they will choose to carry out mergers and acquisitions again,so more and more enterprises begin to carry out multiple mergers and acquisitions in a short period of time.With the increasing of continuous M&A events and the continuous expansion of M&A scale,it becomes particularly important to study whether enterprises can improve their performance through continuous M&A.Zijin Mining,as a leading enterprise in China’s non-ferrous metal industry,has carried out mergers and acquisitions for more than 40 times from 2008 to 2021,and acquired high-quality mine projects at home and abroad.It is one of the typical enterprises implementing the continuous merger and acquisition strategy.In this paper,Zijin Mining’s continuous mergers and acquisitions from 2012 to 2021 are taken as the research object,and the long-term and short-term performance of Zijin Mining’s continuous mergers and acquisitions is analyzed and evaluated comprehensively by the event study method and the financial index evaluation method.The results show that:(1)Zijin Mining’s continuous mergers and acquisitions promote the improvement of short-term performance:Among the 15 sample events selected in this paper,the cumulative excess return rate of 13 sample events is greater than 0.The cumulative average excess rate of return(CAAR)showed a general performance before the announcement day,and showed a continuous upward trend after the announcement day,and the T-test results at the 95%confidence level showed that it was significantly greater than 0.(2)Zijin Mining’s continuous mergers and acquisitions had a significant positive impact on long-term performance:with the implementation of the continuous mergers and acquisitions,the profitability and operation capacity of the company were improved;Short-term solvency decreased,while long-term solvency improved.The development ability fluctuates around the average value of the industry,and the overall financial performance shows an upward trend.Multiple regression analysis is used to analyze the correlation between continuous M&A and long-term performance.It is found that continuous M&A has a positive impact on long-term performance at the significance level of 5%.This paper takes Zijin Mining’s successive mergers and acquisitions from 2012 to 2021 as the research object,and puts forward relevant suggestions on improving the performance of successive mergers and acquisitions on the basis of long-term and short-term performance analysis and evaluation,in order to enrich the case studies related to the performance of successive mergers and acquisitions,and provide references and suggestions for other enterprises’ M&A investment decisions.