A Study On The Economic Consequences Of Logistics M&A Based On Cross-listing Motivation

Since 2013,the Chinese government has actively promoted the "The Belt and Road" initiative,which has promoted the economic balance and the development of manufacturing industry,while bringing strategic opportunities and challenges to logistics enterprises.In order to seize opportunities and cope with challenges,logistics enterprises need to constantly improve their comprehensive level.In today’s highly developed global market economy,many enterprises carry out mergers and acquisitions with the purpose of expanding enterprise scale and concentrating capital to improve the comprehensive level.However,at present,few enterprises carry out mergers and acquisitions with the purpose of cross-listing(that is,choosing to list on two or more stock exchanges at home and abroad).Cross-listing can bring positive effects such as easing financing constraints and spreading risks.However,due to the late start of our capital market,the history of the cross-listing enterprises is short,so the cross-listing enterprises lack reference enterprises,the regulations and regulations are more strict,it is difficult to achieve the cross-listing.Mergers and acquisitions of companies listed in different capital markets are an effective way to achieve cross-listing.Therefore,the study of enterprise M&A with the realization of cross listing as the main motivation can provide reference for later enterprises,help enterprises smooth merger and acquisition and achieve cross listing,enhance the comprehensive strength of enterprises,and improve the international competition level of Chinese enterprises.This paper mainly adopts literature research method,theoretical research method,case study method and summary induction method.This paper reviews and combs relevant literature of enterprise merger and acquisition,cross-listing and economic consequence sintroduces relevant concepts and theoretical basis,and on this basis studies the case of Sinotrans(hereinafter referred to as "Sinotrans")’s merger and acquisition of Sinotrans Air Transport Development Co.,LTD.(hereinafter referred to as "Sinotrans"),analyzes the reasons for the merger and acquisition.Combined with the overall development trend of the current logistics industry,the economic consequences of M&A are analyzed.Firstly,short-term performance is analyzed based on the event study method;secondly,financial performance is analyzed based on the financial index method;finally,the synergistic effect after M&A is analyzed and the effectiveness of M&A is evaluated to provide some reference for other enterprises.Based on the case study of M&A development of China Outbound Shipping,this paper draws the following conclusions: First,the main motivation of M&A development of China Outbound Shipping for stock exchange absorption and merger is to achieve cross-listing and broaden financing channels;in addition,the reasons for M&A are to exert synergistic effect,improve industrial chain layout and practice "The Belt and Road" initiative.Second,the exchange of shares by China Overseas transportation to absorb the development of foreign transportation improves the solvency,operation and development ability of enterprises,and gives full play to the operating synergies,but the profitability is reduced,and there are certain financial risks and internal integration risks.Therefore,enterprises should pay attention to capital management and internal integration to improve the performance after the merger.The research and analysis of this paper accumulate experience for the future research and provide suggestions for the practical operation of M&A behavior.But at the same time,due to the influence of case occurrence time,the limitation of data acquisition channels and the limitation of the number of references,this paper also has some shortcomings.