Short term market response and financial performance of continuous mergers and acquisitions in the aviation industry: A case study of Zhongzhi shares

Business School, Zhuhai University of Science and Technology, Zhuhai, China

^* Corresponding author: huangzerong0302@outlook.com

Abstract

In the context of slowing global economic growth, corporate co mpetition has become increasingly fierce, and many enterprises have pursu ed development through merger and acquisition activities. Data shows that although the number of global merger and acquisition transactions has fluct uated in the past five years, the scale of mergers and acquisitions has contin ued to grow driven by industry integration needs. Starting from merger and acquisition theories such as synergy effect and economies of scale, the pap er expounds the strategic motivations and implementation processes of cor porate merger and acquisition. It tracks market reactions to the acquisitions through the event study method, interprets investor expectations using the information signaling theory, and analyzes changes in corporate profitabilit y, solvency, and other indicators through financial capability metrics. The s tudy finds that in the early stage of Zhongzhi Co., Ltd.’s merger and acquisi tion, there was a wait-and-see attitude in the market, leading to short-term s tock price fluctuations. With the advancement of integration, long-term pos itive development was achieved, and financial performance also showed si gnificant improvement, providing a typical paradigm for corporate merger and acquisition practices.