Research On The Motivation And Performance Of Environmental Protection Enterprise Mergers And Acquisitions

In recent years,with the development of economy,environmental problems are becoming more and more serious.The government has introduced many measures to solve the environmental problems.To some extent,it also promotes the development of the environmental protection trade.Due to the gradually strict environmental regulations,and the high requirements of the market for environmental comprehensive capacity,and the low concentration of the industry,many environmental protection enterprises have chosen merger and acquisition strategies in order to achieve extensive development and occupy the market share,so as not to be eliminated by the industry,which has also led to the merger and acquisition boom in the environmental protection industry in recent years.The research on the motivation and performance of merger and acquisition can directly evaluate the effect of merger and acquisition,better find problems,and provide reference for similar enterprises in the industry.In this paper,the zhongyuan environmental protection company is selected as the research object among many environmental protection enterprises,and the M&A motivation is taken as the fulcrum.Combined with the relevant financial data of three years before and after the M&A,the influence of M&A on environmental protection performance of zhongyuan is explored by using event study method,tobin's Q value method,financial index method and factor analysis method.Through the comparison with other environmental protection enterprises in the same industry,relevant enlightenment can be obtained,which can provide reference for sewage treatment enterprises in China's environmental protection industry to formulate and implement merger and acquisition strategy and effectively use this kind of capital operation to achieve long-term development and improve performance.This paper draws a conclusion through the research: Firstly,the short-term performance is good,the merger and acquisition event obtained a positive cumulative excess return,the market performance is good.Secondly,long-term market and financial performance is significantly improved,profitability is significantly enhanced,and relevant financial risks are effectively avoided and prevented;At the same time,merger and acquisition also brought about rapid expansion of asset scale and business.Through the integration of sewage treatment business of zhengdong water supplies,economies of scale were brought into playand development capacity was significantly improved.Thirdly,through the comprehensive evaluation of the motivation and performance of enterprise mergers and acquisitions,in-depth analysis of the factors affecting the performance change,found that the accuracy of strategy formulation,the timing of merger and acquisition and the appropriate selection of merger objects,the efficient use of resources and the integrity of the management system have an important impact on the performance of enterprise mergers and acquisitions.Because the enterprise scale expands too fast,to some extent,it leads to problems such as low efficiency of asset utilization,low efficiency of resource integration and inventory management in later period,and imperfect management system.Environmental protection based on the central plains east water the advantages and disadvantages in the process of M&A,it is concluded that environmental protection enterprise M&A enlightenment: the enterprises should comply with the macro market development trend,clear goals and mergers and acquisitions under the premise of their own advantages,and choose a suitable acquisition target,achieve economies of scale,at the same time,integrating resources efficiently and effectively and provide the perfect management system as a guarantee.By studying the motivation and performance of environmental mergers and acquisitions in central China,it is hoped to provide some experience for other listed companies in environmental protection industry to implement merger and acquisition strategies,so as to better promote the long-term sustainable development of environmental protection industry.