Research On The Impact Of M&A Financing Methods On M&A Performance Of Chinese Cultural Enterprises

In recent years,China's cultural listed enterprises have developed prosperously in a rapid speed.On the one hand,the income of the people continues to increase,and they have more affluent cash.Therefore,satisfied with food and clothing,people have paid more attention to the pursuit of spiritual life,and the demand for consumption of cultural goods increases.On the other hand,to transform the economic development structure,the state pays great attentions to the cultural industry,and has issued many helpful policies and projects,which helps to reduce the obstacles to the development of cultural enterprises,and provides opportunities and space for cultural enterprises to operate.China's vigorous development of the cultural industry not only adjust the national economic and industrial structure,but also guides to enhancing the soft power of Chinese culture,promoting the traditional civilization of the Chinese nation,and striving to become a world cultural power.Listed cultural enterprises are also striving for their own development.Among them,mergers and acquisitions is one of the effective methods to achieve rapid expansion,strategic cooperation and resource integration.In 2013,the cultural industry launched a boom of mergers and acquisitions in China;the enthusiasm for cultural industry mergers and acquisitions has increased.Such a special trade the cultural industry is compared to the traditional industries that cultural companies are difficult to obtain bank loans because of the light assets and the characteristics of many off-balance-sheet intangible assets,additionally,China's restrictions on mergers and acquisitions in debt financing are very strict,Therefore,the M&A financing methods are different from other industries,mostly concentrated in own cash and equity financing.In addition,different financing methods affect the effectiveness in the process of mergers and acquisitions.With the increase of mergers and acquisitions of cultural industry-related enterprises and the expansion of mergers and acquisitions,the impact of M&A financing methods on the M&A performance of listed cultural enterprises in China is worthy of our continuous attention and in-depth study.This paper focuses on the perspective of M&A financing methods and studies the M&A performance of Chinese listed cultural enterprises.First of all,the paper combs and integrates past literature and theory,and summarizes the research conclusions of cultural enterprises mergers and acquisitions,M&A financing methods on the impact of M&A performance,and then,it briefly introduces the current M&A in China's cultural industry,analyzes the preference and causes of M&A financing methods,and further searches the mechanism and principle of different funding sources for the performance of listed cultural enterprises after M&A.After that,the paper selects 130 M&A samples of A-shares in China's Shanghai and Shenzhen stock markets from 2010 to 2015,in which listed cultural enterprises were leading the M&A,collects financial period from 2009 to 2017 from the year before the merger to the two years after the merger as the research window,and then the study classifies the financing method(Stock)into non-equity financing parties(0)and equity financing methods(1),use the difference between the operating profit rate for the two years after the merger and the year before the merger as a measure of the M&A performance,analysis with empirical method of multiple linear regression,and concludes that most of the M&A samples of listed companies have a decline in M&A performance in the second year after M&A compared with the first year after M&A.Compared with non-equity financing methods,equity financing methods are more helpful to improve the profitability and performance of listed cultural enterprises after mergers and acquisitions;after distinguishing property rights,compared with state-owned cultural listed companies,equity financing methods are more helpful to improve Post-M&A performance and profitability of non-state-owned listed cultural enterprises.We hope to provide reference for M&A activities and M&A financing decisions of listed cultural enterprises after this research.