Research On The Performance Of Continuous M&A Of Dongfang Group Under The Background Of Transition

Under the background of supply-side structural reform,the demand for transformation and upgrading of traditional enterprises in China is increasingly strong,and with the prosperity of the M&A market,the number and frequency of M&A are gradually increasing,which also makes domestic M&A behavior show a trend of continuous M&A,and has increasingly become the mainstream and hot topic of domestic scholars when they study M&A.At present,traditional enterprises in China operate in a diversified way.Mergers and acquisitions with the goal of business transformation have become the norm.Changes in the regulatory environment have also brought new challenges,problems and disputes to enterprises.However,traditional enterprises’continuous M&A is influenced by their personalized character:istics.There is no uniform criterion for judging the success or failure of continuous M&A.The performance evaluation of continuous M&A under the background of traditional enterprises’ transformation and the reasons affecting the performance of continuous M&A deserve to be discussed in detail in micro-cases.This paper studies the performance and related issues of DongFang Group after the implementation of continuous M&A,which is a microcosmic case subject.At the same time,combining with its own situation,it is considered that DongFang Group,s continuous M&A strategy based on seeking synergy effect and improving market share and competitiveness will bring a certain degree of performance improvement.Based on the M&A events announced by DongFang Group from 2013 to 2017,this paper evaluates the long-term and short-term M&A performance of DongFang Group from the quantitative and qualitative perspectives,using event study method,financial index analysis method,non-financial performance method and principal component analysis method respectively,and verifies the feasibility of DongFang Group’s continuous M&A strategy through the research results.Based on the study of the performance and potential risks of DongFang Group’s successive M&A,this paper draws the following conclusions:(1)In terms of short-term performance of continuous M&A,the company’s excess cumulative return rate performs well,and there is no obvious downward trend.In the event window period,M&A performance performs well,creating value for shareholders.(2)In terms of long-term financial performance of continuous M&A,compared with the previous period,the gap with the same industry is gradually narrowing;under the principal component analysis method,the long-term financial performance score of DongFang Group is ideal,and the long-term performance of continuous M&A shows an increasing trend in recent years.It can be seen that the continuous M&A strategy of DongFang Group has provided support for the rapid development of the company.This paper finds that the M&A target of DongFang Group has been achieved,the M&A performance is in line with expectations,the diversified development model of the dual-main business has been formed,and the continuous M&A is more successful.However,there are certain risks and challenges in the long-term performance support and future development based on the new business.It is necessary to promote the coordination of the dual-main business based on the existing business.Based on this,this paper puts forward some suggestions to develop and strengthen the scale effect and risk control,with a view to providing some reference for the transformation and upgrading of the same type of traditional enterprises in China.