Study On The M&A Performance Of Cement Industry In China

M&A is the inevitable outcome of the rapid development of market economy．Marketcompetition is becoming increasingly fierce with the acceleration of the internationalizationprocess．Mergers and Acquisitions as a management means is increasingly favored by thebusiness operators not only because it can make the enterprise to optimize the capital operationmanagement and reduce operating costs，also it can promote the enterprise "Leaping"development and make the enterprise to achieve its strategic objectives fast. Cement industry isthe basic industry of national economic development，at the same time it also is the keyindustries of the national macro-control，which closely associated with the development of thenational economy. In recent years，with the fast development of our national economy andUrban and Rural Construction is carring out methodically, the Demand for cement is in a risingstate．But the development of Chinese cement industry do exists many problems，such as lowdegree of industry concentration，a large number of enterprises but their distribution isscattered，enterprise scale is large but is not strong enough and overcapacity of cement industryand so on．The state introduced a number of appropriate policies to promote healthydevelopment of Chinese cement industry and the cement enterprises also made a variety ofmanagement reforms for their own survival and development in order to change thissituation．In this situation，M&A in the cement industry is becoming the mainstream mode ofoperation．In the past five years，The M&A of Cement enterprise both in size and in numberhas been in a rapid rise and the future is continuously increasing.This paper，based on thecurrent situation，in our predecessors on the basis of existing studies，using financial indicatorsof evaluation method，combined with Factor Analysis on overall performance of M&Aempirical，studies on Chinese cement industry．The results shows：Mergers and Acquisitionsimpact on business performance in general is a downward trend after the first rise，That is tosay the total performance of enterprise in M&A year and after the first year has beenimproved significantly，but the overall performance of M&A in second years after the mergerof enterprises is the decline．The main contents of this paper are as follows：The first chapter Introduction．This chapter first describes the research background，purpose and significance，and then reviewed the existing literature and did an analysis，findsout the problems，so as to determine the point of entry，then lists the research methods andresearch framework，finally pointed out the innovation point．The second chapter The related theory of performance listing Corporation merger andacquisition．The main content of this chapter is divided into three parts：The concept definition of M&A and M&A performance, types of M&A；M&A summary description；performance evaluation method of M&A．The third chapter Analysis of the current situation of Chinese cement industry mergersand acquisitions of listing Corporation．This chapter first elaborated the development presentsituation in Chinese cement industry，the policy environment and the characteristics of mergersand acquisitions，and then the analysis of M&A in China cement enterprises．The fourth chapter An empirical test of the listing Corporation merger and acquisitionperformance of China’s cement industry． This chapter firstly introduces the M&Aperformance evaluation model，combined with the financial indicators selected in this paper，the use of financial indicators，supplemented by factor analysis for China’s cement enterprisesM&A performance of empirical test and analysis．The fifth chapter conclusion, suggestions and the further prospect．This chapter isaccording to the fourth chapter of the empirical results to draw conclusions and give theappropriate countermeasures，finally points out the limitations that exist in this article andresearch direction of the next step．The main content is that this paper defining the research scope in the cement industry ofChina, combining the economic and institutional background in China，The research samplesare from thirty cement enterprises implementing M&A listed in Shanghai and Shenzhen twocities from2006to2010. Samples are chosen by each company’s Current ratio，Asset-liabilityRatio，Earning Per Share，Net Assets Income Ratio，Total Assets Growth Rate，Increase Rateof Main Business Revenue，Turnover of Current Assets and its Total Assets Turnover and soon，8financial indicators for the primitive variables to build the index system．By using factoranalysis and building comprehensive performance score model is to calculate comprehensivescoring function of each company．By comparing scores，comes at a time and the mean score isto analyze how the M&A behavior impact on cement enterprise business performance．Somecorresponding suggestions are also given．...