A Study On The Motive And Economic Consequence Of Affiliated Merger And Acquisition Of State Owned Enterprises

The proportion of related party M&A in China’s M & a market is relatively high.The so-called affiliated merger and acquisition refers to the asset transaction between the listed company and its holding company and its subordinate companies.The state-owned enterprises account for a large proportion of the related merger and acquisition events,which are mainly due to the fact that some assets of the state-owned enterprises were stripped through the split listing in the early stage.Moreover,through the affiliated merger and acquisition,the operating performance can be improved rapidly,and the financing function of listed companies can be guaranteed,which results in the high proportion of related merger and acquisition of state-owned enterprises.However,due to the existence of information asymmetry factors,related merger and acquisition is easy to hide the motivation of interest transmission,which is not conducive to the economic development.Therefore,regulating the related merger and acquisition behavior of state-owned enterprises plays an important role in achieving high-quality economic development.Affiliated merger and acquisition is a special type of merger and acquisition.At present,there are many researches on merger and acquisition,but there are few literatures on related merger and acquisition.This paper first reviews the relevant literature on M& A,summarizes the motivation and economic consequences of M & A,and points out the inadequacy of the existing literature in explaining the related M & A behavior.Secondly,in the framework of existing research,this paper tries to discuss the motivation and economic consequences of state-owned enterprise related merger and acquisition.Finally,taking Nari’s affiliated merger and acquisition event as a case study,this paper explores the motivation of Nari’s affiliated merger and acquisition,and verifies the internal consistency between the motivation and the financial and non-financial consequences after the related merger and acquisition,which provides some factual basis for the theoretical framework of the previous article.In the part of case analysis,this paper summarizes the motivation of Nari’s M & A by analyzing the process of related party M & A of Guodian Nari;and analyzes the changes of financial performance and non-financial performance before and after related merger and acquisition by means of event research method,catastrophe progression method and financial index analysis method.Finally,according to the case analysis,this paper concludes that:(1)the motivation of state-owned enterprises in China is greatly affected by the policy;(2)after the related merger and acquisition,the business development ability of Nari has been significantly improved;(3)the non-financial performance of Guodian Nari is good.This paper provides some suggestions for stakeholders:(1)regulators should strengthen the audit of related M & A activities;(2)mergers and acquisitions of high-quality enterprises with technology,market and production synergy effect,which is conducive to invest more resources into the integration process after M & A and enhance the main business;(3)enterprises should pay attention to the performance of social responsibility,which is conducive to their attention The long-term development of enterprises;(4)investors should treat the related merger and acquisition rationally.The experience of related M & A of Nari can provide some reference experience for other SOEs in mixed reform to improve M & A efficiency,optimize industrial structure and achieve high-quality economic development.