Analysis of the Environmental Solid Waste Management Industry Large Oversea M&A Motivation and Its Implementation Performance
Xin Sun
DOI: https://doi.org/10.59429/pest.v5i3.1722
Keywords: Environmental Protection Enterprises; Oversea M&A; M&A Motivation; M&A Performance
Abstract
The paper is based on the 2015-2017 environmental protection industry overseas M&A as the research object, makes a statistical analysis of the scale of industrial M&A and its sub-sectors; summarizes and elaborates the mainstream views of the motivations and performance of the scale of industrial M&A and its sub-sectors; and performance analysis of the status quo, characteristics and motivation of large-scale overseas M&A, five typical and representative large-scale overseas M&A cases in the solid waste industry were selected, and the short-term and long-term performance of overseas M&A were analyzed by using the event window method and financial index, with significant conclusions obtained ,and relevant suggestions are made in the paper from the perspective of industry development and enterprise operation.
References
Data for this paper are from the CSMAR database and annual corporate earnings reports.
In 2017, the German Federal Ministry of Economic Affairs and Energy issued amendments to the Foreign Trade Regulation to increase government investment interventions, and as of April 2020, national screening mechanisms have been implemented in 14 EU member states.
Buckley, P.J. and Casson M, 1976. The future of the Multinational Enterprise [M]. Macmillan: London.
Buckley, P., Casson, M. The Future of the Multinational Enterprise in retrospect and in prospect. J Int Bus Stud 34, 219–222 (2003).
Jensen, M. C. (1986). Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers. The American Economic Review, 76(2), 323–329.
Jensen, MC. "12. Corporate Control and the Politics of Finance". U.S. Corporate Governance, edited by Donald H. Chew and Stuart L. Gillan, New York Chichester, West Sussex: Columbia University Press, 2009, pp. 243-279.
Jensen, MC., The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems. Michael C. Jensen, A Theory of The Firm: Governance, Residual Claims and Organizational Forms, Harvard University Press, December 2000; Journal of Finance, July 1993.
Jensen, M. C. (2002). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. Business Ethics Quarterly, 12(2), 235–256.
Adler, Michael & Dumas, Bernard, 1983. "International Portfolio Choice and Corporation Finance: A Synthesis," Journal of Finance, American Finance Association, vol. 38(3), pages 925-984, June.
Shleifer, Andrei, and Robert W Vishny. 2003. “Stock Market Driven Acquisitions.” Journal of Financial Economics 70 (3): 295-311.
Du YP, Research on the influence of management power on mergers and acquisitions of state-owned enterprises and their financial effects [D]. Doctoral dissertation, Tianjin University, 2010.
Zhang Qia and Li Chunqing, CEO compensation, M&A motivation and power rent-seeking mechanism [J]. Finance and Accounting Monthly, 2015.08.
The two M&A subjects of Capital Group and Capital Environment are analyzed in this paper based on the annual report data of the parent company, Capital Group (600008).
Feng GF, Wu LJ. An empirical study of M&A performance of listed companies in China [J]. Economic Research, 2000, (1): 54-68.
Xue AW. Do cross-border mergers and acquisitions improve corporate performance - an empirical analysis based on Chinese listed companies [J]. The Economist, 2017.6:88-95.
Li JE, Case study of China Tianying's merger and acquisition of Urbaser [D]. Master's thesis, Jiangxi University of Finance and Economics, 2021.
Guo BB, Analysis of the performance of environmental protection enterprises oversea M&A in China-an example of Everbright International's acquisition of NOVAGO [D]. Master's thesis, Shandong University of Finance and Economics, 2019.
Reference index return for Hong Kong stocks are Evergrande index, for A shares are Shanghai and Shenzhen indices. Due to the long window period of CTI's acquisition of Urbaser so they do not participate in the short-term performance statistics; the window 0 days of BCG-ECO, BCG-BCG, BEHL-EEW and CEIL-NOVAGO are 2015.6.15, 2015.11.16, 2016.2.5, 2016.6.27 respectively.
BCG completed its merger in 2015 to achieve consolidation, BEHL and CEIL were both consolidated in 2016, and CTI only finalized the acquisition procedures for Urbaser in January 2019, achieved consolidation that year, and sold it in 2021.
Zhang X, Research on M&A motivation and M&A performance of state-owned enterprises in China [D]. Doctoral dissertation, Capital University of Economics and Business, 2012.
Yu YN, Empirical analysis of corporate M&A performance and influencing factors [D]. Doctoral dissertation, Jilin University, 2012.