Study On The M&a Characteristics And Its Relationship With M&A Performance Of China’s Cultural Enterprises

In recent years, the central government attaches great importance to the development of cultural industry, promoting the development of the cultural industry to become the pillar industry of the national economy. As an emerging industry in China, cultural industry, which relies on the cultural soft power, has the attribute of ideology, compared with the traditional manufacturing industry. Under the guidance of central policy, local governments expressed their will vigorously to develop the cultural industry, encouraging large-scale cultural enterprises to develop cross-regional, cross-industry mergers and acquisitions. The number of M&A transactions tends to be upward from1998to2012,and there was a substantial increase especially after2006. However, the M&A activities are not always so effective, the number is not necessarily equal to the quality. This thesis aims to answer these questions:"what are the characteristics of these M&A?"."what are the differences before and after the transaction?", and "is there a correlation between different characteristics and performance?"Based on the review of relevant research at home and abroad, the paper qualitatively describes the characteristics of M&A in our country’s cultural enterprises from the number of transactions together with the transaction size. The study distinguish the characteristics from the following seven aspects:the industry distribution, regional distribution, the main background, proportion of the acquisition, associated attributes, aspects of its acquisition. Then, the paper selected financial data of cultural listed companies in which M&A transactions have occurred from2007to2010. Moreover, the article establishes a comprehensive evaluation system and calculates the composite score to represent business performance in the year before the merger, acquisition year, and one year after the merger, two years after the acquisition on use of the factor analysis. Therefore, the research which focuses on the correlation between M&A characteristics and the business performance can be divided into two parts. Not only can we study the difference of the performance under every feature, we can also do some regression between the overall M&A characteristic and performance.Generally speaking, the M&A performance of cultural listing corporation experienced a rise at first and then decrease but rise again finally. The changes are not so obvious that the M&A activities don’t improve the performance of cultural companies successfully. Under the premise that M&A activities are able to increase shareholders’ wealth of cultural enterprises, the problems that how to increase the performance improvement efforts, allowing more businesses to benefit from M&A transactions, getting access to sustainable and stable long-term gains are urgent to be solved. In terms of different characteristics of mergers and acquisitions, the features that whether both parties are in the same province or not, the final shareholding percentage, the payment method, the different types of M&A all seem to be effective functioning. However, the main background and the associated acquisition don’t play a significant role in the difference.The paper achieves the quantitative description of the status of cultural companies as well as the empirical testing of M&A performance on the basis of classification, factor analysis, regression and so on. Of course, the follow-up research can select more samples and prolong the study time together with doing some in-depth excavation of specific characteristics to make greater progress and development in this field.