Research On The M&A Motivation And Performance Of Chinese Securities Companies

Mergers and Acquisitions is an important way for enterprises to seek rapid development,and its appearance is the inevitable outcome of the development of social productive forces to a certain stage.With the maturity of China’s market economy and the development of the capital market,Mergers and Acquisitions has become one of the main ways of the external expansion of the enterprise,playing an increasingly important role in the economic transformation and industrial upgrading.With the gradual opening of the financial market,the trend of mixed operation in the domestic financial industry is becoming more and more prominent,and the competition in the securities industry is becoming more and more fierce.In order to improve the degree of concentration and enhance their competitive advantages,securities companies have adopted the way of mergers and acquisitions to grow and develop.Mergers and Acquisitions has become the future trend of securities industry.In the wave of mergers and acquisitions,although some securities companies achieve their targets of mergers and acquisitions between industry,the effect of mergers and acquisitions are not the same.And whether a mergers andacquisitions activity has completed the desired mergers and acquisitions goals,whether the mergers and acquisitions activities create effective value for the merged securities company,has been the focus of attention and discussion.Therefore,this article choose two aspects from the mergers and acquisitions,the mergers and acquisitions motivation and mergers and acquisitions performance which the outside world was concerned about,to study mergers and acquisitions behavior.It is of great significance to explore the benefits of mergers and acquisitions to the industry.This paper selects securities industry’s largest merger case "Shenyin Wanguo merger Hongyuan securities" as the research object,using case analysis method and comparative analysis method,analyzes the merger motivation and whether the performance of mergers and acquisitions create value for the new company after the merger.In the content of the article,firstly introduce the research background of this article,point out the theoretical and practical significance of the article writing,and elaborate the research content and research methods.Secondly,introduce the related theories and concepts of Mergers and Acquisitions motivation and Mergers and Acquisitions performance.Then,starting with the development of the securities industry and the basic situation of the case,the paper gives a general description of the case.Thirdly,analyzes the motive of Mergers and Acquisitions from two aspects of external and internal,then is the core part of this paper,an in-depth study of the merger performance from Shenyin Wanguo merger Hongyuan securities,draw a conclusion from the two aspects of financial and non-financial indicators,the merger creates value for the combined company.In the end,draw inspiration from the case of Mergers and Acquisitions in order to provide a useful reference for securities industry’s merger and acquisition in the future.