Study On The M&A Performance Of Chinese Cement Industry Listed Companies

In recent years,China has entered the active period of mergers and acquisitions.The multi-level capital market prototype is gradually building,and the registration is reforming,the new three board progressing steadily.Though mergers and acquisitions,enterprises could able to achieve the goal of expanding the capital scale and optimizing the allocation of resources in the event of a surplus of resources,which can enhance the market control and realize the new development.About the question that how the enterprises is affected by M&A event,the scholars did not stop studying.The diversity of research methods,the size of the enterprise,the size of the sample will affect the number of research results,so the conclusions are different.This paper is located in the cement industry.I choose the case of Jidong Cement acquisition to Qinling cement to analysis the M&A performance from four angles.The case study method is used to estimate the excess returns of the secondary market shareholders before and after the announcement date and analyze the short-term M&A performance;the accounting index method is used to estimate the long-term financial performance before and after the merger;EVA is used to help observe how shareholder value creation is affected by M&A events;trying to trace Merger motivation from the product life cycle perspective,the establishment of non-financial indicators to assess the degree of realization of the acquisition of motivation.The results showed that:(1)The secondary market has produced more accumulated excess returns in the short term after the acquisition,especially for the mergers and acquisitions,the short term effect of the M&A event is more obvious.(2)M&A could achieve strategic performance,but not very successful in financial performance,its financial performance was more vulnerable to the impact of the macro environment.(3)Mergers andacquisitions got a short-term increase in the value of shareholders through mergers and acquisitions,but it was decline in EVA show fluctuations,and even down to the merger before in the long-term.(4)Chinese cement industry is in the scale stage of life cycle.M&A enabled enterprises to achieve an increase in market share,the strengthening of economies of scale.To a certain extent,enterprises achieved the acquisition of the purpose of the market by M&A.