Research On The Influence Of Ownership Structure On M&A Performance Of China’s Cultural Enterprises

As an emerging industry，cultural industry has the advantage of largepotential market demand，low consumption of natural resources，stronginfluence, and has caused for concern in the world in recent years. Withthe development of socialist market economy,our government has paid moreattention to the development of cultural industry. In2009,“DevelopmentPlanning for New Energy Industrial Revitalization”, the first planfocused on development of cultural industry, passed by the executivemeeting of the State Council, marking the cultural industry has risen asa national strategy. In recent years, because of many favorable policiesand rising demand for cultural products and services following the rapiddevelopment of economy, China’s cultural industry has entered the fasttrack of development. In the background of favorable policy and goodmarket environment, the number of cultural industry mergers andacquisitions will continue to increase. We should pay more attention toM&A performance when the number is growing rapidly, because the M&Aperformance, to some extent, represents the success of mergers andacquisitions, and even has an impact on the quality of transformation ofthe whole industry. Many factors affect the performance of M&A. For stockcompanies，the ownership structure is one of the potential factors.Especially combined with the special situation of our country,enterprises have special ownership structure, it is necessary to studyChina’s cultural enterprises M&A performance from the ownership structureperspective.Based on the M&A samples of culture listed enterprises during2007-2012，this paper conduct research on the influence of ownershipstructure on M&A performance by combining theoretical and empiricalanalysis. According to the results of descriptive statistical analysis,merger events have no significant impact on the performance of enterpriseculture. However, when the cultural enterprises are grouped according todifferent ownership structure, we can see that cultural companies withdifferent ownership structure have great difference in M&A performance.Therefore, this paper conducted further research on how the ownershipstructure influence the M&A performance of cultural companies byregression analysis, obtained the following conclusions:(1) There is aninverted U-shaped relation between ownership concentration and M&Aperformance in cultural companies. Within a certain range, the higher thedegree of ownership concentration, the better the performance of mergersand acquisitions, but when the concentration level has reached a certain degree, ownership concentration can reduce the performance of mergers andacquisitions;(2)The equity balance degree of cultural enterprises and theM&A performance has a negative correlation;(3) The relation betweencontrolling shareholder of state-owned background and M&A performance isnot significant in cultural companies, but the corporate holdingshareholders have a significantly negative impact on M&A performance;(4)the proportion of executives shareholdings and performance of mergers andacquisitions have negative linear relationship. The greater theproportion of managerial ownership, the more inclined to low M&Aperformance.