A Reach Of The Performance Of Chinese Petroleum Enterprises Oversea M&A

When the global financial crisis is accompanied by large-scale mergers andacquisitions (M&A), the oil industry has always been the first to bear the brunt.Since2005, China’s oil companies have reversed adverse positions in overseaacquisitions and gradually realized their oversea journey. However, with a largenumber of failures occurred in oversea acquisitions in China, scholars started toquestion the outcome of large-scale oversea M&A among China’s petroleumenterprises.M&A performance is a key factor in measuring the success ofoversea M&A. The study on it has more than100years of history, but China’sresearch in this area has started relatively late. There is no unified method ofperformance evaluation, most of them use foreign related theories for referenceand combine the situation of our country’s.At present, most researches on performance evaluation of enterprisesoversea M&A remain in the theoretical stage, and the related studies mainlyfocus on short-term, the consideration of long-term performance analysisbecomes less. Also, empirical studies are mostly based on the case study method,while applicable index model related to the whole industry is very difficult tofind. In addition, the application of EVA seldom considered the defect inreflection of future growth. Based on the above, this article attempts to revise thestandard EVA model by utilizing available data, to add future growth factors intoit, and to construct an appropriate oil enterprises oversea M&A performanceevaluation model by combining with the characteristics of Chinese petroleumenterprises. An empirical test will be performed as well.In order to seek characteristics of oil companies, this paper initiallyreviewed the history of development of oversea M&A in Chinese petroleumenterprises. It also selected a suitable evaluation model of China’s petroleumenterprises oversea M&A performance by combining with the analysis of relatedtheories. Besides, it collected the main performance evaluation index data(2007-2012) from14major listed oil companies. With applying both theoretical and empirical methods, a remarkable petroleum enterprise oversea M&Aperformance evaluation model has been established. Annual grades of relatedfactors have also been obtained. After adopting specific oversea M&A cases toverify the model, it found oversea M&A can improve the solvency of enterprises,perfect their capital structures, and increase companies’ future growth value,whereas it does not have obvious effects on enterprise’s economic value added(EVA). Finally, in view of the above analysis, this article systematicallyestimated the future development of Chinese petroleum enterprises overseaM&A and put forward some corresponding suggestions to provide reference forthe improvement of its performance.