The Company's Cross-Border Merger And Acquisition:to Seek For Development Or To Cater To Market Sentiment?

In recent years,under the background of the adjustment of industrial structure in China,how to achieve the transformation and upgrading of traditional industries has been widely concerned.The listed companies which break through the predicament by transformation are constantly encouraged.The most popular method is cross-border merger and acquisition in the present.In this way,many enterprises realize the diversified management strategy and improve business performance.The company's share price rose.There are many successful cases.Guangdong Golden Dragon Development transforms to securities trader.MIG Unmobi Technology transforms to network marketing company successfully.However,many companies,such as Panda Financial Holding,Shenke Slide Bearing Corporation,Cultural Investment Holdings don't succeed in improvement.This paper analyses the unsuccessful case of Cloud Live Technology Group by theories of diversification and market value management.From the perspective of catering to market sentiment or seeking for development,it analyses the motives of the mergers and acquisitions and the cause of failure.Many factors need to be taken into consideration in cross-border mergers and acquisitions in order to realize transformation and development which is an important strategy.On the other hand,if a company wants to implement cross-border mergers and acquisitions,it needs to have a clear strategic planning and undertake cross-border risks.The public listed companies should be more cautious.Catering to the market sentiment for short-term interests is not desirable.This is the significance of this study.