Research On Motivation And Performance Of Cross Industry Merger And Acquisition Of Dowstone Technology

With the slowdown of domestic economic growth,the market competition facing enterprises is becoming increasingly fierce.Under the complicated economic situation,how to overcome difficulties and achieve further development is a common problem faced by many enterprises.In recent years,China's capital market has developed rapidly,the number of merger and acquisition events of listed companies is increasing,and the merger and acquisition market is in full swing.In addition to horizontal mergers and acquisitions in the same industry,cross-industry mergers and acquisitions also occur from time to time.Many listed companies have carried out cross-industry mergers and acquisitions through the capital market,hoping to find new profit growth points through business transformation or diversification.Whether cross-industry mergers and acquisitions can create benefits for enterprises is the question that this article wants to study.This paper selects the case of Dowstone Technology's cross-industry merger and acquisition of Qingdao Haoxin and Jiana Energy for research.This paper first explains the background and significance of the research,introduces relevant research literature at home and abroad,expounds the theory of M & A and the evaluation method of M & A performance,and establishes a framework for subsequent research.Then this paper analyzes the case of mergers and acquisitions,briefly introduces the basic situation of the parties to the merger and acquisition transaction and the specific process of the merger and acquisition transaction,and then analyzes the reasons for Dowstone Technology to implement crossindustry mergers and acquisitions.After that,this paper analyzes the performance of this merger.In terms of market performance,this paper uses the event research method to calculate the excess rate of return obtained by the enterprise during the M & A event period,and evaluates the short-term market performance of the M & A event.In terms of financial performance,this paper uses Dowstone Technology's financial data from 2015 to 2018 as the basis for research,uses financial indices of corporate profitability,solvency,operating capacity,and development capacity,and calculates the company's EVA to evaluate M & A performance.Finally,this paper summarizes the enlightenment and research conclusions of the Dowstone Technology cross-industry M & A case.From the analysis results of the event research method,the company obtained positive excess returns during the event window of the merger and acquisition,indicating that themerger and acquisition achieved good short-term market performance;from the analysis results of financial indices,the merger and acquisition improved the company's profitability From the calculation results of EVA,the company's EVA significantly improved from 2015 to 2018,indicating that the M & A has achieved good performance.In addition,it can be seen that macro-policy factors,the development prospects of emerging industries,motivations for corporate mergers and acquisitions,payment methods for mergers and acquisitions,and the industry and company selection of the merger and acquisition targets are important factors influencing the success of mergers and acquisitions.