A Study On Financial Performance Of Baosteel Merger And Acquisition Of Wugang

The steel industry has a huge scale effect.However,looking at the data in recent years,it has been found that the degree of concentration and excess production capacity of the steel industry in China has declined.Many years of mergers and acquisitions have not transformed our country from a big steel country to a strong steel country.Instead,our industry concentration has been declining.The steel industry has emerged.The situation of zero profits or even huge losses.Therefore,whether the merger and reorganization of China's steel industry is necessary to happen generally is a problem worthy of discussion.Further more,the analysis of the causes of mergers and acquisitions and the impact on performance are of great significance.This article consists of five parts.In the first part,the introduction expounds the research background and research problems of this paper,discusses the significance of the research,the research purpose and research methods,and the innovation of this paper.The second part is the theoretical basis of mergers and acquisitions.It first summarizes the concept of mergers and acquisitions,followed by motivation theory,including synergy theory,scale effect theory,and market power theory.Finally,it describes the performance evaluation methods,including event research methods and financial research.The Law makes statements for the concepts and basic theories needed in the following chapters.The third part first describes the background of Baosteel's M&A and restructuring of Wuhan Iron and Steel,and elaborates on the industry background,policy background,and economic background.Then it details the pre-merger preparation work and the specific M&A process,laying the foundation for the performance analysis of the next part.The fourth part of empirical research is the focus of this article.Through the previous theoretical basis,Baosteel and Wuhan Iron and Steel acquired several years before and after the merger and acquisition of stock price changes and financial data,using event research methods and financial analysis to study the analysis of mergers and acquisitions on short-term performance and long-term performance.The fifth part is based on the empirical research and analysis of the previous part,sums up Baosteel's merger and acquisition incentives and M&A performance of Wuhan Iron and Steel Corporation,and has a revelation for the merger and reorganization of other steel companies in China.In the context of supply-side reform and state-owned enterprise reform,the mergers and acquisitions of Baosteel and Wuhan Iron and Steel responded to the government's call.At present,it is more conducive to the development of the two companies.This has given direction to the development of other steel companies.The role and significance of reference.