Performance Study Of Jingrui Electric Materials' Acquisition Of Parson

Under the background of Sino-US trade frictions,the semiconductor and new energy industry has become one of the important pillar industries of the national economy.Its development level is an important indicator of the national science and technology,and is also closely related to the people’s living standards.This paper studies the special M&A motivations in the microelectronic materials industry and the effectiveness of the evaluation methods and results of M&A performance which provides an example for the development of listed companies in China’s microelectronic materials industry through the case studied.This paper first focuses on the extensive M&A cases in China’s microelectronic material industry,and analyzes the acquirer’s motivations of the M&A.Secondly,the event study method is used to analyze the short-term and longterm market reaction of M&A through the change trend of cumulative abnormal return and buy-and-hold abnormal return.Thirdly,using the BSC-EVA comprehensive evaluation model,based on the four dimensions of the traditional balanced scorecard performance evaluation system,the capital investment and capital cost are included in the evaluation to form a qualitative and quantitative comprehensive performance evaluation system that takes into account all stakeholders.Finally,based on results,this paper would like to make suggestions for the M&A of Crystal Clear Electronic Material Co.,Ltd.(CCEM)and similar microelectronic materials enterprises.The research found that the M&A motivations of CCEM include achieving its extensive strategic objectives,improving the industrial chain of the new energy sector,obtaining synergies,obtaining customer resources from the acquiree,improving research capabilities,and performance thickening.In addition,from the perspective of shortterm market performance,the M&A has had a significant positive impact on the share price of CCEM,and the market is optimistic about the prospect of the M&A.In the two years after the announcement of the M&A,the M&A had a considerable positive impact on the long-term market performance of CCEM,and then this impact gradually weakened and eventually tended to disappear.Finally,from the perspective of BSCEVA,after the M&A,the overall performance of CCEM has improved,mainly reflected in the optimization of financial indicators,the substantial increase in revenue and profit,the improvement of research capacity,technical level and the improvement of EVA.According to the conclusions,this paper suggests that listed companies in the microelectronics industry can actively explore feasible M&A plans from the perspectives of expansion of production scale,improvement of industrial chain,collaboration between products,customer resources,R&D capabilities,and performance thickening,while also taking capital investment and capital cost into consideration.