Research On The Effect Of Vertical Mergers And Acquisitions Of Enterprises In The New Energy Automobile Industry Chain

As one of the seven strategic emerging industries,new energy vehicles have always been the sustained driving point of national policy guidance.The rapid development of new energy vehicles has activated the entire industrial chain and stimulated the investment enthusiasm of many enterprises.Under the comprehensive influence of factors such as the difficulty in obtaining new energy automobile manufacturing qualification,the high price of upstream materials,more and more enterprises in the industrial chain choose vertical M&A to improve their comprehensive competitiveness through resource integration.Therefore,this paper takes the development of new energy automotive industry as the background,and this paper selects Jiangte Motor,which frequently extends and expands in the upstream and downstream of the industrial chain,as a case to analyze its vertical M&A effect,so as to contribute to the research on the vertical M&A effect of enterprises in the new energy automotive industry chain.Based on the theory of enterprise vertical M&A,this paper analyses the characteristics and motivation of enterprise vertical M&A in industry chain according to the development of new energy automobile industry.Then,for six vertical M&As of Jiangte Motor,the short-term effects are analyzed by event study method,and the long-term effects are analyzed by using financial index method and some non-financial data from five aspects,including company strategy?operation and so on.When evaluating the long-term effects of Jiangte Motor 's vertical M&A,this paper not only makes a horizontal comparative analysis according to the industry level,but also makes a comparison between forward M&A and backward M&A in the order of time.Finally,this paper draws relevant conclusions and enlightenment.The case analysis draws the following conclusions: 1)In the short term,the market is cautious about Jiangte Motor's investment in YinLi New Energy,and not very optimistic about the start-up technology enterprises.The vertical M&A reduces shareholder wealth,while the market reaction of the others is good.Through the comparative analysis of the market effect of forward M&A and backward M&A,it is concluded that forward M&A significantly increases shareholders' wealth.2)Analysis of the long-term effects of vertical M&A show that Jiangte Motor realizes strategic transformation through vertical M&A.It has positive effect on company operation and core competitiveness,but negative effect on solvency and management ability.Through the comparative analysis of forward M&A and backward M&A,forward M&A contribute more to the company's operation and core competitiveness,backward M&A weaken the company's ability to manage,and a series of vertical M&As reduce the company's solvency.Generally speaking,Jiangte Motor adopts vertical integration strategy layout,enriches business and improves market risk resistance,which is very beneficial to the long-term development of the company.