Does HNA Group Have A Problem With Excessive Mergers And Acquisitions?

With the tide of economic globalization sweeping across and increasingly fierce market competition,more and more enterprises choose to expand the size of enterprises and improve the economic benefits of enterprises through mergers and acquisitions,so as to enhance the strength of enterprises and enable enterprises to stand firm in the rapids.Although M&A events are increasing day by day,the economic consequences of M&A for enterprises are yet to be studied.In addition,whether there is a limit to the size of mergers and acquisitions expansion,and what consequences will result if the scale limit is exceeded,such issues are still inconclusive.Therefore,based on the background of China’s system and economic environment,this paper takes HNA Group,an enterprise with frequent M&A activities,as the case study object.This paper makes an in-depth study of the motivation of its M&A expansion,and uses the financial index analysis method and event research method to investigate the influence of the M&A activities of HNA Group on its M&A performance.The modified Z-Score risk assessment model is used to evaluate the financial status of enterprises.Meanwhile,the DEA model is used to calculate the investment efficiency of enterprises.The financial status and investment efficiency trend are compared and analyzed respectively in combination with the asset scale of enterprises.The final conclusion is that the continuous and rapid expansion of HNA Group has broken through the limit of enterprise scale,which leads to the continuous decline of enterprise investment efficiency and financial distress,and induces the enterprise financing scale out of control and the risk of debt default.The main expected contribution of this paper is to show the specific situation of the merger and acquisition expansion of HNA Group more clearly and deeply by analyzing the merger and acquisition environment and merger and acquisition motivation of HNA Group and measuring its merger and acquisition performance according to China’s national conditions.At the same time,by matching the change trend of the early warning value of financial risk and the measured value of investment efficiency with the asset scale at the corresponding time point,it is demonstrated that HNA Group has the problem of excessive merger and acquisition,and further studies to obtain the reasonable scale of its merger and acquisition expansion.The content of this paper not only provides new ideas for the case study of enterprise merger and acquisition,but also has certain reference value and significance for other similar enterprises.