Research On Value Creation Of Overseas Continuous M&A Based On Resource Scheduling Theory

In recent years,under the support of relevant national policies,China’s auto parts industry has developed rapidly.For enterprises in emerging economies,the biggest weakness is the lack of resources.So how do enterprises achieve value creation in the process of continuous overseas M&A? Most previous studies have been conducted from the perspective of static factors such as management characteristics and M&A experience,with little attention paid to the linkages between successive M&A transactions.At the same time,resource orchestration theory has not been widely applied in the field of M&A.Therefore,this thesis attempts to study the value creation process and effect of JS Electronics’ overseas M&A from 2012 to 2018 from the perspective of resource arrangement.This thesis takes JS Electronics overseas M&A as the case study object.Firstly,based on the theories of resource arrangement and synergy effect,this thesis analyzes the theoretical support of value creation in continuous M&A,and sorts out and comments on the literature on continuous M&A,value creation and resource arrangement.Secondly,this thesis combines the 10 overseas M&A activities of JS Electronics and divides them into three M&A stages according to the overall development level and development trend of the auto parts industry.Then,with the resource arrangement theory as the breakthrough point,this thesis analyzes the value creation process of JS electronic overseas M&A in three stages from the value creation path of "resource construction-resource restructure-leveraging resource utilization." Finally,based on the resource orchestration theory,we qualitatively analyze the value creation effect of the three stages of M&A,and use the event study method and principal component analysis method to quantitatively analyze the value creation effect of each stage of M&A.The results show that in the process of value creation through continuous M&A,there is a certain correlation between M&A events,and resource arrangement runs through the whole process.With the deepening of integration,the integration strategy will change from stable reorganization to rich and innovative.Value creation will be carried out in three aspects: environmental,business and platformization.In terms of value creation effect,continuous overseas mergers and acquisitions combined with reasonable arrangement of resources can usually create huge value for enterprises.Among them,the value effect is the first and most significant in the expansion of market scale,the enhancement of R&D innovation ability and the leading position in the industry.In the short term,the market effect is good,but in general,with the increase of the number of M&A,the market effect shows a decreasing trend;Long-term financial performance has also been better during successive mergers and acquisitions.In short,the realization of value creation in the process of continuous M&A cannot be separated from the rational arrangement of resources,but also the rational use of integration strategies and the mastery of value creation methods.It is hoped that the research results of this thesis will be helpful for Chinese enterprises to create value and realize investment return in continuous M&A.