Analysis on the Consequences of Baoshan Iron and Steel Group's Absorption and Merger with Wuhan Iron and Steel Group

Jiayue Wang

doi:10.54691/bcpbm.v30i.2415

Authors

Jiayue Wang

DOI:

https://doi.org/10.54691/bcpbm.v30i.2415

Keywords:

Iron and steel enterprises; Absorption and merger; Price of stock; Event study method; financial statement.

Abstract

Using Baoshan iron and steel group and Wuhan iron and steel group as the research objects, this paper will introduce the state-owned enterprises in China. Firstly, it introduces the basic information and merger motivation of the two companies. Secondly, through the event study method and comparative analysis method, further investigating the changes of stocks after business merger. Finally, using the data of financial statements and relevant numerical analysis, it is found that the merger has a certain positive impact on the fluctuation of the company's value and share price, and effectively improves its position and value in the market.

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