Chasing Whirlwind: Value Creation Or Value Damage

In the background of encouraging innovation and entrepreneurship,there are a group of people who are willing to pursue the wind.Every time the whirlwind appears,there will be a large group of entrepreneurs following the whirlwind,hoping to get a share of what Lei Jun said: "standing on the whirlwind,pigs can fly".It's a good choice for entrepreneurs to join in the business outlet,but not all of them are successful in the pursuit of the outlet.The hotter the outlet is,the fiercer the competition is.Most Internet entrepreneurs can only catch up with it.Ma Yun also said that "when the wind comes,pigs will fly,but when the wind passes,pigs will die".We have observed that many listed companies carry out cross-border M & A and chase after the wind.So,this causes us to think: what is the motivation of the listed companies to pursue the whirlwind type M & A? Can the pursuit of whirlwind M & A enhance the value of the company and create wealth for shareholders?In this paper,under the background that listed companies are willing to pursue the outlet and purchase popular assets to implement cross-border M & A in recent years,combined with cross-border M & A,synergy effect,M & A performance and other related theories,the case analysis method,event research method and other research methods will be used to study the cross-border M & A behavior of chasing the outlet and analyze the motivation and value creation of cross-border M & A of listed companies In order to prevent the company from "fooling",the corresponding policy suggestions are put forward.Through the case study of Chutian Expressway's acquisition of Sanmu Intelligence,it is found that from the short-term performance perspective,when the event period is [-10,10] and [-20,20],this M & A brings short-term positive results to listed companies.But when the event period is selected as [-30,30],CAR is negative throughout the event period,indicating that investors are not optimistic about the merger;in the medium and long term,the results are not satisfactory,and the merger failed Bringing value creation to listed companies.In addition,the high valuation of M & A may make the listed companies face a large amount of goodwill impairment.Therefore,the listed companies should carefully choose the target of M & A and not blindly pursue the hot air;when evaluating the target of M & A,they should fully evaluate whether it can reach the performance commitment number,and do not carry out high premium M & A because of high performance commitment;only after full integration,can the expected synergy effect of 1+1>2 be brought into play.