Research On Effect Of Baosteel's Acquisition Of Wusteel

Steel is an important strategic material of the country.Every link of the steel industry from production to sales is closely related to the development of the national economy.But at present,the steel manufacturing and processing industry is still facing the influence of various factors,such as high concentration of the industry,unbalanced overcapacity and high economic pressure on assets.Faced with these challenges,merger and acquisition has become an effective way.Baosteel and Wusteel belong to the giant enterprises of steel and iron industry before merger and acquisition.They occupy an important position in China's steel industry.The study on the effect of Baosteel and Wusteel's merger and acquisition can provide a model and experience reference for future steel industry.Based on the different content involved,this paper is mainly divided into seven chapters.Chapter One describes the background and significance of this topic,and introduces the research methods and contents.Chapter Two discusses the basic content of financial analysis theory and Harvard analytical framework.The Harvard analytical framework mainly analyzed from four dimensions,namely strategic analysis,accounting analysis,financial analysis and prospect analysis,which lays a theoretical foundation for further analysis.Chapter Three studies the process and motivation of Baosteel's merger and acquisition of Wusteel from the strategic analysis dimension,and sums up the development goal of the company by combining the current situation of the steel industry,SWOT model and Porter's Five Forces model.Chapter Four points out the company's accounting estimate and accounting policy from the perspective of accounting analysis,and studies in detail the accounting item factors,such as inventory,accounts receivable and fixed assets,to verify the validity of accounting analysis.Chapter Five carries on the related index analysis andstatement analysis by the way of horizontal and vertical comparison from the financial analysis dimension.The former mainly refers to comparing the reports before and after Bao Steel merger and acquisition,summarizing the influence of Baosteel merger and acquisition on the statement,comparing and choosing the difference analysis between HBIS Group and Shagang Group in the same industry company horizontally,and studying the implementation of Baosteel with the help of index analysis.Changes in some indicators before and after M&A,such as changes in debt servicing,operation,profitability and development capacity.Chapter six predicts the operating environment of the iron and steel industry and the profit of Baosteel after merger and acquisition from the perspective of prospects analysis.At the same time,it carries out quantitative analysis of Baosteel combined with financial early warning model.Chapter Seven is the end of the full text,which provides some reference for future research on the basis of summarizing the main points of the foregoing.Based on the above analysis,Baosteel shares have been greatly improved after merger and acquisition,which is mainly reflected in the realization of its strategic requirements of capacity removal,industrial concentration and high-quality development.At the same time,the selected accounting policies are relatively stable and the quality of financial information is reliable.After the merger and acquisition,the scale of Baosteel's enterprise,the optimization of assets structure,the ability to repay debts and the mode of operation are all improved to a certain extent,and the prospects of Baosteel's stock operation and profitability become also considerable,which is worth looking forward to.