Study On The Values Of Mergers And Acquisitions Of Chinese Iron&Steel Industry Based On Capm Model

As an important component in the national economy,the development of the iron&steel industry plays a very important role in the development of the national economy.When the global economy was in depression because of the global financial crisis in2008,Chinese iron&steel industry had stepped out of ebbtide by a whole set of policies.In2009,there was a upward tendency for Chinese iron&steel industry which led the way in showing a strong indication of recovery.But in2010,because of the increasing uncertainty in global economic recovery and the rise of ironstone,the development of Chinese iron&steel industry confronted huge challenges.This paper analyzed the values of mergers and acquisitions for Hebei Iron&Steel Group Corporation based on CAPM Model,in order to check if M&A can have some positive impacts on iron and steel enterprises in China.And meanwhile, researching into the existing problems can also offer effective references for M&A of other steel corporations.This text is divided into six parts:Part One introduces research background.meaning.methods and relevant theories,including the concept of M&A.deep impetus and the application of CAPM Model.Part Two introduces the history of domestic and international M&A of steel industry,including illustrating the cases of M&A,market structure,market centralization degree and etc.Part Three discusses the upriver and downstream of the steel industry.This part introduces the concept of Industry Chain by analyzing the demands and supplies.The upriver mainly discusses iron ore industry and the downstream mainly makes a research on industry and construction.Part Four is about empirical analysis,including the M&A experience of Hebei Iron&Steel Group Corporation,regression analysis according to the statistic data before and after the M&A of Hebei Iron&Steel Group,comparative analysis of β value and standard error and putting forward the conclusions of this research.Part Five comes up with the recommendations of the text.Part Six is the summary and points out some suggestions for the future work in this field.With a range of market driven factors blocked as well as the recent rise of ironstone and the tightening measures in the real estate industry,Chinese iron&steel industry needs to probe into a new,more positive and more stable way to recover in the market without state macro-control.