Research On M & A Performance Of Coal Listed Companies In China

This paper studies the research on the reason for M & A and performance of M &A, China’s coal industry is experiencing the transition from growth stage to maturation stage, different industry has different effect on the type or perfonnance of M & A of coal corporation,So it is necessary to do some research on the performance of M & A in different industry stage.This study follow the overall idea of’T heory 一 Model — Empirical—Conclusion”. First of ail, we summarize former scholars’ theory and empirical test results on mergers and acquisitions, especially the research results tor M & A performance evaluation of the event study method and accounting method. Then, we explore the world’s coal industry development trend, Chinafs 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. Then we explore the effect of different industry stage on M & A mode and performance. In the empirical part, we use the principal component method of factor analysis to build a composite performance score model, and measure the impact on the performance of the listing Corporation’s M & A by calculating the discrete degree of the perfomiance between listing company and the whole industry through different periods.Through theoretical and empirical analysis, we find out that in short tenn M & A does has obvious negative effect on the performance of listing companies. From the perspective of industry stage, in the period ot high prosperity, horizontal mergers influence the perfonnance in a positive way while vertical mergers influence the performance in a negative way. But in in the period ot low prosperity, horizontal mergers influence the performance in a negative way while vertical mergers influence the performance in a positive way. So for the government and listing companies,the best choice present is to do vertical merger in order to reduce business risk, but in the long term coal corporations should try their best to do some horizontal mergers in order to increase market share and bargaining power in the background that the concentration degree of coal industry is increasing rapidly.