Analysis of the evolution process of mining M&A in China based on complex network
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Abstract
With the continuous advancement of mining industry in China, a growing number of mining enterprises have taken M&A as an effective tool to expand scale and enhance economic efficiency.Based on the research data of merger, acquisition and reorganization concerning the listed companies in China from CSMAR, with reference of the concept of two-model network, the paper incorporates the complex network analysis method into the calculation of various indicators, namely average degree, average clustering coefficient and average path length and others.Subsequently, in accordance with these indicators, the evolution law of mining mergers and acquisitions is analyzed in the listed companies in our country over the past years.At the same time, with the of K-core algorithm, the core subgroups of the M&A network are extracted, in which the paper expounds on the characteristics, evolutionary trend of the core subgroups in the network and distribution characteristics of members.As is suggested in the findings, the mining M&A market is vulnerable to the impact of external environment, which could be justified in the 2008-2009 financial crisis, 2013 weak mining environment and the overcapacity and so on.However, quick response is found soon after the crisis with stronger recovery ability and ever-growing ties between the M&A subjects.The rise of the number of M&A subjects gives rise to even more complicated relationships among the subjects.In terms of the core subgroup members, the relevant mining listed companies are different each year.In recent years, more and more natural shareholders have joined the merger and acquisition.
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