Energy And Mineral Resources In Our Country Listed Company Merger And Acquisition: An Empirical Study Of Financial Synergy Effect

With the continual development of Chinese economy, M&A (Mergers andAcquisitions) has become an important way for enterprises to expand capital and optimizeallocation of resource. Many researches also focus on M&A activities. Financial synergymeans the financial benefits got from M&A. Financial synergy is one of motivations ofM&A, and also the key to measure whether M&A is successful or not. As a result, thecomprehensive analysis of financial synergy becomes an important problem for financemanagement and strategy management of enterprises.Recent years, frequent M&A activities happened in energy&mineral industry.Therefore, this paper selects55Chinese Shanghai and Shenzhen-listed companies ofenergy&mineral industry as research samples, uses empirical analysis to study financialsynergy caused by M&A activities, and analyzes realization of financial synergy of thesecompanies.In this paper, I mainly use empirical research method. First, I introduce relevanttheories of M&A and financial synergy. In empirical analysis part, I build evaluation modeland financial index system, use factor analysis to study sample data and calculatecomposite score, and then validate assumptions with the results of empirical analysis.Finally, on the basis of theories and empirical analysis, I give conclusions of this researchand suggestions to improve financial synergy in M&A activities.Innovation of this paper is selecting companies of energy&mineral industry asresearch samples and assuming the financial integration after M&A as a reason of financialsynergy. This paper tries to testify that financial synergy in short term after M&A isobvious than financial synergy in long term and give suggestions for companies to get longterm financial synergy.