Research On Investment Efficiency Of HNA Holdings From The Perspective Of M&A

At present,my country's domestic economic growth has begun to slow down.Investment is one of the main factors driving economic growth.The government has issued a series of related policies to guide enterprises to implement investment.The transportation industry is a basic industry that maintains the development of my country's national economy.Although it has developed rapidly in recent years under the government's large amount of capital investment,it still lacks competitiveness globally.Therefore,companies have adopted mergers and acquisitions to optimize the allocation of resources,expand their scale,and enhance their international competitive position.However,after 2016,with the increase in the supervision of mergers and acquisitions by the China Securities Regulatory Commission,the number and amount of mergers and acquisitions have declined to a certain extent.This shows that the transportation industry began to optimize M&A activities under the influence of the market,and attached importance to the efficiency issue after M&A.HNA Holdings,as a typical enterprise in the transportation industry that expands in the form of mergers and acquisitions,the net profit in 2018 after frequent mergers and acquisitions fell to its lowest value in ten years.At the same time,it considers the lack of correlation research on M&A and investment efficiency in the transportation industry.This article selects HNA Holdings as a case company to explore the impact of mergers and acquisitions on corporate investment efficiency,which is of great significance.This article first sorts out the concepts of merger and acquisition and investment efficiency,related theories and literature reviews;secondly,it introduces the development and investment status of the transportation industry,and selects 560 observations of the transportation industry from 2009 to 2018 as samples,using Richardson(2006)Based on the model,construct an investment efficiency measurement model suitable for the transportation industry and make a statistical analysis of the industry's investment efficiency level;again,combined with the development profile of HNA Holdings,the motivations for mergers and acquisitions were analyzed.And from the perspective of the number and amount of mergers and acquisitions,types,payment methods and merger and acquisition results in the ten years of M&A events,to explore the impact of different characteristics of mergers and acquisitions on corporate investment efficiency;Finally,analyze the reasons for inefficient investment,and propose countermeasures And suggestions.Through the research in this article,the main conclusions are as follows: First,overall,the investment efficiency of HNA Holdings has changed greatly.Compared with the other three major airlines that have not had large-scale mergers and acquisitions recently,the level of investment efficiency is low,indicating that HNA Holdings Frequent M&A activities did not improve the investment efficiency of the company;Second,this article selects two periods during which M&A is frequent as the mid-term M&A period.A horizontal analysis found that compared with the period of the first M&A period,the investment efficiency before and after the second M&A period changed greatly,and In 2018 after the merger and acquisition,there was a significant underinvestment,and the type of the second merger was relatively simple.Therefore,this article believes that while reducing the number of mergers and acquisitions,companies should appropriately increase diversified mergers and acquisitions to diversify business risks.At the same time,combined with the changes in the types of mergers and acquisitions in the country or industry,carefully choose the type of mergers and acquisitions;third,HNA's financing is more than 90% from borrowing,a single financing method,which greatly increases the debt risk of enterprises and reduces The utilization rate of funds has led to tight cash flow and low investment efficiency.Fourth,due to the lack of attention to efficiency by managers,under the large amount of government investment,the implementation of merger and acquisition decisions is often blind,lack of prudence,and cannot be better.Choosing a project with a positive net cash flow wastes a lot of resources,resulting in inefficient investment.This article combines the characteristics and development status of HNA,horizontally compares the changes in investment efficiency indicators before and after two mergers and acquisitions,and adds the average investment efficiency of Air China and the four major airlines for vertical comparison.Explore the reasons for HNA's inefficient investment and make targeted suggestions.In the study,the two research directions of M&A and investment efficiency are combined into specific case companies,which not only expands the research scope of the sample,but further explains the relationship between M&A and investment efficiency.And it is of great significance to the optimization of HNA Holdings and M&A activities in the transportation industry and the improvement of investment efficiency.