An Empirical Study On The Impact Of Cross-regional M&A On The Performance Of China's Petrochemical Listed Companies

Cross-regional M&A is an important strategic activity for enterprises to improve their business performance,because it helps enterprises to play a large-scale effect,and promote inter-regional resource flows,improve regional resource endowments,adjust the industrial layout and narrow the regional development gap.M&A behavior as an effective way to achieve strategic objectives cannot be ignored.Petrochemical industry is a pillar industry to promote the development of national economy,but it slowed down,overcapacity highlighted and its structure needs to be adjusted in the new era of China's economy.Therefore,it is of practical significance to research the impact of cross-regional M&A on the performance of petrochemical enterprises.Based on relevant M&A performance theory,the paper studies the petrochemical listed companies' performance difference before and after cross-regional M&A and the impact of cross-regional M&A on performance.Compared with the former Cross-regional M&A performance,petrochemical listed companies' performance did not significantly improved.In second year and third year after M&A,comprehensive performance and profitability performance significantly lower,liquidity and operational capacity performance decline is not obvious.In 2 to 3 year after M&A,the comprehensive performance,profitability and liquidity have edged higher performance.And more than 50% samples performances have improved in these years.The mode of payment,the geographic distance between both parties,the deal relative scale are negatively related to the performance.Cash payment significantly negative affects second year and third year performance after M&A.The greater of geographic distant and deal relative scale,the performance is lower.The empirical result of most petrochemical listed companies' performance has improved but is still less than before M&A reflects the overall economic development is slowing down.With the resource integration after M&A,geographical distance and deal relative scale negative impact on the performance will fade away.We obtain some M&A enlightenment and put forward relevant policy suggestions.