Study To The Serial M&As Performance Of Dong Jiang Environment

With the development of society and economy,the construction of ecological civilization in China will be further deepened."Green economy" has also become a new hot topic.The development of environmental protection industry is in full swing which makes its sub-industry get more and more intention.In this field,most of the companies run as local enterprises with small scale and low concentration.And it leads to the increasing phenomenon of large-scale environmental protection enterprises expanding through M&A.As an industrial hazardous waste treatment company,Dongjiang Environment's pace of M&As in a short period of time is striking in the environmental protection industry.As we known,performance is the most intuitive evaluation of the M&A.Therefore,this article selects the Dongjiang as the object in order to study how the serial M&As impact Dongjiang Environment and what the reason is,and to carry out whether the similar companies can make serial M&As and then how to effectively use the operation of this kind of capital to serve the company's strategy and improve performance.Firstly,this article introduces the upsurge of M&A market and the phenomenon about rapid development of environmental protection industry and frequent M&A,which illustrates the research background and significance of this article.Then clarify the research content and methods on the basis of the research on serial M&As.Secondly,based on the case of Dongjiang 's serial M&As,the motivation and process will be introduced.Thirdly,the short term performance and long-term performance of the company are evaluated by the event study method and the financial index ROE respectively.The short-term performance results show that most of the serial M&As in the company obtain positive CAR,indicating that the company's short-term performance is good,and the ROE index and DuPont based on the DuPont score.Analysis of its driving factors found that the long-term performance of serial M&As has been improved,followed by the analysis of the impact factors behind the performance of serial M&As and it's found that the target selection of M&A,the choice of payment methods affect the performance,and the efficiency of inventory management as well as management system also has an important impact on the performance.Finally,based on the case analysis of the Dongjiang,the enlightenment of the company's serial M&As is summed up in order to provide reference about relevant operations to similar companies.The strategic objectives should be made clear before M&As are carried out,and choosing the target as well as adopting reasonable payment methods correctly which meet its own development makes great importance.At the same time,integrate resources effectively and provide perfect management system for M&As will be better.