Research On Continuous M&A Value Creation Of Dongjiang Environmental Company Limited Under The Background Of Green Governance

Entering the new era,the strategic plan of building a beautiful China requires the Party and the government to shift from extensive development model to a high-quality one,and continuously improve the capacity of green governance.Environmental protection enterprises,as an important force in pollution control,have attracted wide attention from the market.Moreover,the subsector of hazardous waste treatment is characterized by "scattered,small and weak",and the capacity utilization rate of enterprises is generally low,leading to a boom of M&A in the industry.Dongjiang Environmental Company Limited is deeply engaged in the field of waste management and environmental services,and has acquired 41 times in the past 20 years.Can frequent M&A and rapid expansion produce synergies through mergers and integration,thus generating economic value and green value for enterprises and even the society? And how did it do that? Therefore,from the perspective of resource arrangement,combined with the background of green governance,this paper deeply analyzes the value creation mechanism and effect of Dongjiang Environmental Company Limited’s serial M&A.Firstly,this paper reviews scholars’ research achievements in green governance,serial M&A,resource orchestration and other fields,and defines related concepts based on green development theory,synergy theory and resource orchestration theory.Secondly,based on the background of green governance,this paper introduces the industrial development and M&A market.Based on the theoretical and practical background,this paper divides the serial M&A events of Dongjiang Environmental Company Limited into four stages according to the enterprise strategy,M&A frequency and the distribution of the target industries,namely single-industry growth stage,multiindustry trial and error stage,stabilize advantageous industry stage and expansion slowdown stage.Then the mechanism of value creation by serial M&A is explored according to the three steps of resource structuring,resource restructuring and resource leveraging,and the effect of value creation is analyzed from three dimensions of financial value,market value and green value.It is found that serial M&A is a periodical change model.Enterprises with serial M&A will change the path of resource orchestration to create value.The path of value creation in the growth stage of single industry is "focusing on key market--rich resource reorganization--leveraging regional market".The trial-and-error stage of multi-industry is "related diversification--pioneering resource reorganization--leveraging business chain";The stage of stabilizing advantageous industries is "focusing on advantageous industry--rich resource reorganization--leveraging the national market";The slowdown stage of expansion is the value creation path of "focusing on existing industries--stable resource restructuring--leveraging long-term development".In addition,the value created by serial M&A is uneven.The market value and financial value produced by serial M&A are mostly positively correlated.However,the green value is not well reflected in the market value.Therefore,for enterprises,during serial M&A they should pay attention to the reasonable orchestration of resources to create value according to the environment and strategic objectives.For enterprises and the market,when evaluating the value created by serial M&A,they should pay attention to the green value besides the financial value and the market value,timely adjusting the resource arrangement path,and treating the value of green input from a long-term perspective.For the government,it should continuously improve the whole process supervision system and mechanism to fully release the potential value created by serial M&A.