Study On The Performance Evaluation Of Green M&A Of Heavily Polluting Enterprises

As the main force of China’s economic development,industrial enterprises have promoted the rapid development of China’s economy,but also brought about serious resource depletion and ecological and environmental problems due to their sloppy development methods,and have been labeled as three high("high energy consumption,high pollution,high emissions").How to fundamentally change the crude economic development concept of heavy polluting enterprises and realize green transformation has become an urgent problem.Therefore,in the context of advocating green development,green M&A has become an indispensable choice in China’s M&A landscape to alleviate the increasingly prominent contradiction between the economic development of heavy polluters and the deterioration of the ecological environment,to adjust the industrial structure and to promote the green transformation and upgrading of the industry.In view of the fact that cement enterprises are typical heavy polluters with various environmental problems such as overcapacity,excessive emissions and substandard emissions,the state encourages mergers and acquisitions of advantageous cement enterprises to gradually eliminate backward production capacity.In this paper,we take the case of the green development of Tangshan Jidong Cement Company Limited(hereinafter referred to as "Jidong Cement"),a leading cement company in North China,and its green merger and acquisition of Beijing GTC Mangrove Environmental Technology Co.(hereinafter referred to as "Mangrove")as a case study.In order to know whether Jidong Cement has achieved its goals after the merger,we need to analyze its performance.First,the concepts of heavy polluters,green M&A and performance evaluation are defined,and signaling theory and triple bottom line theory are introduced.Second,the process of green M&A in this case is reviewed to analyze its green M&A model,as well as macro,meso and micro level motivations.Finally,based on the signaling theory,the event study method is used to analyze the short-term performance changes caused by this M&A event.Based on the triple bottom line theory,33 indicators in 10 dimensions of economic,environmental and social dimensions are selected to construct a comprehensive performance evaluation system for green M&A,and the long-term performance of this M&A event is analyzed mainly by the abrupt change level method.Based on the performance evaluation,the following conclusions are drawn: First,the short-term performance evaluation under the event study method reveals that Jidong Cement has achieved a positive response in the market for this merger;second,the long-term performance evaluation under the mutation level method reveals that Jidong Cement’s economic,environmental,social performance and overall performance improved after this M&A.Based on the findings,the following insights are obtained: first,actively promote green M&A to facilitate green transformation;second,adapt to the "two-end" approach and reduce carbon in parallel;third,promote solid and hazardous disposal to help profits rise;fourth,the layout of business changes to adapt to downstream trends;fifth,increase "environmental protection + R&D" double investment,integration of green resources.