China's Coal Listed Company Merger And Acquisition Mode And Its Performance Research

In a market economy, mergers and acquisitions, as effective way to allocate resources, are of great significance to optimize the industrial structure and improve the competitiveness of enterprises. Along with the continuous development of the world coal industry, mergers and acquisitions between large coal enterprises are constantly push forward. As to China’s coal enterprises, building a large coal enterprise groups is not only to achieve the policy requirements of the sustainable development of the coal industry, but also an effective way to improve the competitiveness of coal enterprises. M&A recombination event between coal enterprises is gradually increased.In theory, the choice of the M&A strategy is a repeated game. Effective M&A type is of great significance to operating performance. Our study chooses to start from the corporate M&A mode, exploring the different effect of M&A mode choice for the enterprise M&A performance. The research findings can provide certain reference to the corporate M&A strategy and the national industrial policy.This study follow the overall idea of "Theory→Model→Empirical→Conclusion". First of all, we summarize former scholars’theory and empirical test results on mergers and acquisitions, especially the research results for M&A performance evaluation of the event study method and accounting method. Then, we explore the world’s coal industry development trend, China’s coal industry development status and China’s coal M&A development status and problems. After that, we summarize the definition and characteristics of the different M&A mode, explore the motivation of coal listed companies in China which implement the horizontal mergers, vertical mergers, and mixed mergers. In the empirical part, we use the principal component method of factor analysis to build a composite performance score model, use the double-differential model to check the correlation between M&A mode and M&A performance of China’s coal listed companies.Through theoretical and empirical analysis, we find out that mergers and reorganization of coal enterprises bring a positive impact on their business performance. The performance of enterprises which choose vertical mergers is better than the enterprises which choose horizontal mergers. Therefore, the government should encourage mergers and acquisitions between coal enterprises, promote the construction of large coal groups to improve the coal industry concentration, we must also promote the integrated development of upstream and downstream industries. In the same time, we should also encourage coal chemical downstream mergers and acquisitions, and encourage large coal enterprises to conduct cross-border mergers and acquisitions to achieve inter-regional resources through overseas M&A integration. As to coal companies, they should implement market-oriented and resource-based M&A integration, and enhance the integration after mergers and acquisitions. Finally, we analyze the inadequacies of this study and the direction to improve this study.