The Study On Synergistic Effect Of Industrial Bank's Acquisition Of Union Trust

In the face of economic globalization,RMB internationalization and other complex business environment,promoting integrated operation is an important starting point for domestic financial institutions to enhance their competitiveness,which is also the inevitable choice to meet the customer's comprehensive financial needs.In recent years,the process of China's financial industry mixed operation is accelerating,mixed mergers and acquisitions has become an important means to explore the integration of financial institutions,especially in banking-led financial institutions which integrate the securities,insurance,leasing and fund industry.This paper argues that the integrated operation of financial institutions is the inevitable trend of future development.Mixed industry mergers and acquisitions are one of the most important means to enhance the core competitiveness of financial institutions.In the financial product innovation,diversified flow of assets configuration,the effect of significant advantages.Therefore,this paper will select the acquisition of Industrial Bank as a case study,and discuss the synergistic effect of the mixed acquisition in the financial field.The research will have important theoretical and practical significance,and the research results will be forward-looking.Previous studies of mergers and acquisitions in the financial sector tend to focus on the industry research from M&A activity among the different sectors of the financial sector this paper.Research on the synergy to take qualitative and quantitative dimensions,can better reveal the connotation of synergy.Firstly,according to the theory of corporate development and M&A motivation theory,China Industrial Bank(CIB)M&A background and relevant content,strategic analysis motives Industrial Bank mergers and acquisitions Union Trust.Then,this paper will analyze the path of synergistic effect.Through the summary analysis of business data,accounting indicators,financial data and corporate governance,this paper discusses the forms of business synergy,management synergy and financial coordination and the concrete realization path.Finally,the synergies of the M&A activity will be evaluated.In this paper,the perspective of four event study,DuPont analysis and data envelope method of improving synergy to assess short-term and long-term market performance efficiency of stock price movement in two dimensions by law.This study shows that:from the perspective of business cooperation,the two sides after the merger of resources sharing,to maximize the financial holding group synergies advantages;after the acquisition to form a new product,technology and market advantages,to provide more market Competitive financial services;help to improve the business structure of China Industrial Bank(CIB),expand the intermediary business income,and promote the diversification of Industrial Bank;M&A activities to help enhance the comprehensive strength and anti-risk Union Trust,to achieve its leap development of.From the perspective of management synergy,this acquisition will help to rationally allocate management resources,enhance the ability of integration and capital operation.After the acquisition,the group can fully manage and improve the management efficiency,but the integration of late M&A;After the merger,the Group can strengthen corporate governance,promote the innovation of the operating mechanism and improve the internal control system.From the perspective of corporate finance,the virtuous circle of capital formation after the merger is conducive to improving profitability and increasing the stability of corporate profitability.After the acquisition,the Group's ability to acquire external borrowing and solvency is improved.However,after the M&A activity,there was no continuous increase in the scale effect,and the efficiency improvement of Industrial Bank was not significant.From a number of perspectives it seems that this acquisition has achieved the desired effect,with a certain synergistic effect but the effect is not sustainable.Application of this revelation is:when financial institutions conduct their strategic layout of the integrated operation,should first clarify its strategic intent,understand the relevant laws and regulations,strengthen research and risk control business policies,by improving the financial one-stop service,play Mixed Synergistic effect of operation.The relevant regulatory agencies should strengthen the reform of the legislative and regulatory system and improve the framework of modern financial supervision system,from simple institutional supervision to functional supervision and institutional supervision.