Empirical Study On Chinese Resource-based Enterprises Overseas M&A Performance

China is a country of laking resources, and the extensive mode of economic growth led to huge consumption of resources. In2008, the outbreak of the global financial crisis led worldwide resource prices to drop significantly, resource-based enterprises in China have carried out overseas mergers and acquisitions. Some enterprises create wealth for shareholders while improving the company’s financial performance, but there are some enterprises facing to crash out., then how about overall performance of resource-based enterprises overseas M&A activity?Firstly, take the Overseas M&A performance theory as the theoretical basis of the full text of the study, secondly introduce more common M&A performance evaluation method at home and abroad, a brief description of their own characteristics and practicality, selected research methods of resource-based enterprises overseas mergers and acquisitions:using the event study method to study the resource-based enterprises overseas M&A market performance using financial indicators to study its financial performance.Resource-based enterprises in China are mostly state-owned enterprises of the relatively large size, many listed on in the Shanghai and Shenzhen Stock Exchange, Hong Kong Exchanges and the stock exchanges in the United States, due to the different environments of the various markets, different levels of investors to invest in resource-based enterprises overseas mergers and acquisitions market performance of the study, the sample is divided into Shanghai and Shenzhen markets and Hong Kong market, the results showed that:the two markets have gained significant levels of short-term cumulative average excess return, and the cumulative excess return of the Hong Kong market was significantly greater than the mainland market, Studies have shown that investors in the two markets have relatively good expectations, and investors in the Hong Kong market are more rational than investors in the mainland market.This paper uses financial indicators method to study the long-term financial performance of China’s resource-based enterprises overseas mergers and acquisitions, combined two aspects of corporate profitability and capacity development with the point of view of the scale effect in resource prone to select the financial indicators, the results found:the long-term financial performance of China’s resource-based enterprises overseas mergers and acquisitionsand showed an upward trend after the first drop, compared with mergers and post-mergerfinancial performance has improved, but not by t test of significance, indicates that China’sresource-based enterprises, especially large-scale overseas mergers and acquisitions in thefinancial crisis in2008, failed to meet the expectations of investorsBased on the above theoretical and empirical analysis, Finally, we put forward a fewsuggestions on how to improve the performance of overseas mergers and acquisitions of theresource-based enterprises in China.