A Study On The Economic Consequences Of The Government-sponsored M&A Of CSR And CNR

Affected by the background of economic globalization,competition among enterprises is becoming gradually sharp.A number of enterprises hope to expand their scales and account for more market shares through merger and acquisition,which contribute to the competitive advantage of the enterprises themselves.With the background of the initiatives “the Belt and Road” and “Chinese 2025” and the reform instruction of state-owned enterprises,the Government-Sponsored M&A of CSR and CNR has led the same trend of Chinese state-owned enterprises.The M&As of state-owned enterprises concern the improvement of the utilization efficiency of state-owned assets,the optimization and upgrading of China's industrial structure and the promotion of international competitiveness.It has become inevitable to revitalize the state-owned enterprises under the new normal in the economic sector.Under such circumstances,it is particularly important to discuss the economic consequences of M&A under the guidance of the government.Compared with the Market-Led M&A,the M&A led by the government has more macro-level considerations.Therefore,after combining the distinct motivations of Market-Led and Government-Led M&As,this paper comprehensively analyzes the economic consequences of M&A led by the government from different angles.Having adopted the Case Analysis Method,the research background,purpose and significance are presented in the introduction part.Then,the related theories at home and abroad are summarized,including the motivation theories of Market-Led and Government-Led M&As and definition of the related concepts of economic consequences.This paper mainly analyzes the economic consequences of the M&A of CSR and CNR from three aspects,namely,financial performance,short-term market performance and other indicators.Through the comparison of the accounting indicators,the financial performance analysis of the changes in the four aspects of the profitability,growth ability,operating ability,and debt paying ability before and after M&A.The short-term market performance mainly use the event research method to analyze the short-term market reaction.In addition,comparisons of the overseas market,product structure and core competitiveness before and after the M&A have been acted to analyze the economic consequences of M&A in a comprehensive way.It is found that profitability and debt paying ability have increased,but growth capacity and operating capacity change is not optimistic.In the short term,the excess return of the M &a body is achieved,and investors are optimistic about the M&A.Compared with the financial performance,the strategic significance of the merger is more prominent: the influence of the overseas market is increasing,the product structure is continuously optimized and the core competitiveness has been significantly improved.Finally,the article concludes and draws some inspirations.It also provides a reference for subsequent Government-Sponsored M&As.