Research On The M & A Effect Of State-owned Enterprises

In recent years,China's government has continuously promoted economic development and the process of comprehensively deepening the reform.This progress has led to the frequent occurrence of M & A activities of many large state-owned listed companies in China under the background of the reform which China's state-owned enterprises gradually upgrade the industrial structure and improve the governance model.This paper studies the case of mergers and acquisitions of state-owned enterprises initiated by the two giants of China's rail transportation equipment manufacturing industry,which is of great significance to improve the international competitiveness of state-owned enterprises.And the topic selection has important practical significance.This paper takes the case of CSR mergers CNR under the background of China's state-owned enterprises reform.This paper takes full account of the role of government in the reform of state-owned enterprises,based on the research of M & A effect between domestic and foreign scholars,and uses the method of combination of theory and practice,to analyze the effect of the M & A,which include market reaction,long-term business performance and synergistic effect.To examine the impact of enterprise management and development based on the assessment results of CSR mergers CNR.The article concludes four main findings.First,from the short-term market reaction,the merger achieved a positive merger effect,which indicates that mergers and acquisitions will bring abnormal income in the short term;Second,from the long-term market reaction,CRRC(CRRC Corporation Limited)has a long-term market potential,the industry status is very solid.From the international market point of view,CRRC also enjoy a certain valuation premium.At present,there is no rival in the A shares of competitors,and in the rail transit traffic,margins,revenue scale and technology of CRRC are far ahead of international competitors.Through the analysis of the recent market reaction,we can see that the market value of the CRRC has been recognized by investors gradually;Thirdly,from the synergistic effect of M & A,the synergistic effect is achieved after CSR mergers CNR,mainly in the three aspects of financial synergies,business synergies and management synergies.Specifically,the financial synergies are mainly reflected in the increase in solvency,income and asset size growth,tax efficiency;business synergies are mainly reflected in the profitability and growth capacity,cash flow increases,market share growth and so on;management synergies are mainly reflected in the improvement of operational capacity,cost control,R & D investment growth and so on.CSR mergers CNR as the pioneer of state-owned enterprise reform,its "strong combination" of the merger and reorganization model has important reference significance to Chinese economy,which is still in the stage of the reform of state-owned enterprises to explore.