The evaluation on merger and acquisition’ performance of the iron-steel corporations

Author(s): Xiaolin Ma, Li Liu, Ying Ning, Dan Liu, Hongyu Liu

Recently the merger and acquisition become the popular method and instrument for improving the industrial concentration degree and corporation efficiency, especially in the iron-steel industry. However did the merger and acquisition realize the original aim and effect? So it is necessary and significant to measure the corporate performance after the merger and acquisition. This research focuses on this issue. To examine the real effect of the merger and acquisition on the performance, this paper starts from the status of the iron-steel industry and selects all financial data and the merger and acquisition events between 2001and 2011, and then this paper uses the factor analysis method to evaluate the performance and uses the classified cluster method to classify the sample corporations. The empirical results show that the performance is not satisfactory in China’s iron-steel companies after the merger and acquisition. In the conclusion the researchers analyzes the reasons and points out that the political management and intervene should be mainly responsible for these phenomenon. This research only focuses the particular industry-the iron-steel industry and uses continuous ten-year data to evaluate the performance, which makes its different from the before studies

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