Research On Continuous M＆A Performance—Case Study On H Company

With the continuous expansion of the reform and opening up pattern,the "Belt and Road" cooperation initiative has had a far-reaching impact on the global economy,and more and more Chinese companies have chosen to go abroad,enter foreign markets,and join the international competition.After reviewing the cases of Chinese and foreign mergers and acquisitions,it was found that large multinational corporations tend to use mergers and acquisitions as the main means of outreach expansion,thereby rapidly expanding the scale of capital and business scope.With the evolution of policies,Chinese companies have caught the“spring breeze” of the policy and continuously expanded and increased the scope and frequency of mergers and acquisitions.From the perspective of motivation,the merger and acquisition of enterprises is mainly to obtain specific heterogeneous resources of the target enterprise,such as the market share,technology patents,brand influence,and financing channels in the region where the acquiree is located.Continuous mergers and acquisitions can indeed bring value to the enterprise logically.However,the results of empirical research on continuous M ＆ A performance have shown that as the number of M ＆ A events increases,M＆ A performance shows a downward trend.Based on empirical research based on big data,the results mainly reflect the trend of the overall performance of enterprises undergoing continuous mergers and acquisitions,and cannot accurately reflect the typicality and particularity of specific enterprises.The case study analyzes the internal logic and mechanism of continuous mergers and acquisitions from a more micro perspective,and opens up the "black box" of whether continuous mergers and acquisitions can improve the performance of enterprises.Existing case studies on continuous mergers and acquisitions are relatively rare.In view of this,this article combines theory and cases,and takes company H in the civil aviation industry as a case study to study the short-term and long-term performance of continuous mergers and acquisitions,and evaluate continuous Whether M ＆ A has brought about the improvement of corporate performance,and further explore and analyze the path and mechanism of continuous M ＆ A impact on corporate performance.This paper finds that the short-term M ＆ A performance of company H has been improved.The short-term market performance of the “Belt and Road” cooperation initiative is significantly better than the short-term performance before the proposal,but the overall longterm performance shows a downward trend.This reflects that in the short term,the continuous merger and acquisition of Company H is favored by the market.There are certain policy dividends,but there are certain problems in the later integration.In view of the problems of continuous mergers and acquisitions,this article believes that reducing the leverage ratio,moderate diversification,and optimizing the merger and acquisition decision-making mechanism can improve the continuous merger and acquisition performance of company H.In the context of China’s current "going global" strategy,studying the impact of continuous mergers and acquisitions by Chinese companies on performance and its internal mechanisms is of research value and reference.