Research On The Performance Of Zhongding Group's Continuous Overseas Mergers And Acquisition

The "Going Out" strategy and the "One Belt,One Road" initiative encourage Chinese enterprises to go abroad and participate in the process of internationalization.Made in China 2025 puts forward higher requirements for the development of the manufacturing industry.In this context,the intelligent and globalization of the automotive industry continues to deepen,forcing upstream parts companies to accelerate transformation and upgrading.However,our country’s auto parts enterprises have the characteristics of small scale and scattered industries,many resources rely on imports,and the overall competitiveness is weak.Endogenous development alone cannot achieve technological breakthroughs in a short period of time.Many powerful companies have turned their attention to overseas markets,hoping to introduce foreign advanced technologies into China through mergers and acquisitions.What is the effect of corporate mergers and acquisitions? Existing research on overseas mergers and acquisitions mostly starts from a single merger and acquisition event,and seldom explores the connection between mergers and acquisitions.Based on this,this paper focuses on the auto parts industry,and takes the series of overseas mergers and acquisitions of Zhongding from 2011 to 2016 as the research.Starting from the strategic goal,exploring its growth mode and operating results has strong practical significance for the internationalization process of other parts and components enterprises.This paper sorts out the literature related to continuous mergers and acquisitions and overseas mergers and acquisitions.On the basis of existing research,it analyzes the background of Zhongding’s overseas mergers and acquisitions,and clarifies its merger and acquisition process.On this basis,summarizing the characteristics and motivations of mergers and acquisitions.The dimension measures the performance changes of enterprises after successive overseas mergers and acquisitions.The research results shows that Zhongding’s overseas mergers and acquisitions mainly take the acquisition of advanced technology and the expansion of business territory as an opportunity to achieve a leap in the quality of customers and market resources,and to achieve synergy effects by integrating the resources of both parties.The performance performance after M&A is divided into short-term and long-term performance.The short-term performance adopts the event study method.The results show that investors have different reactions to each overseas M&A event.Among them,the resistance to the acquisition of French FM is the most significant,which ultimately leads to a series of overseas M&As as a whole.The incident damaged shareholder wealth.Long-term performance research is mainly evaluated from two perspectives,financial and non-financial.First,global factor analysis and EVA research have found that continuous overseas mergers and acquisitions can improve corporate financial performance,but in the long run,performance has declined.From a non-financial point of view,it is found that the R&D capabilities and customer groups of the company have been qualitatively improved,and the non-financial effect is remarkable.Finally,based on the study of case companies,relevant suggestions are put forward for the overseas investment activities of Zhongding and other parts and components companies.