Research On The Economic Consequences Of Continuous High-premium Mergers And Acquisitions By Huayi Brothers

With the improvement and development of China's capital market,more and more enterprises begin to pay attention to and favor mergers and acquisitions.Some data show that mergers and acquisitions do have a significant role in promoting the development of Chinese enterprises.In the context of frequent mergers and acquisitions,the number of mergers and acquisitions of Chinese enterprises has increased significantly,which also shows a certain continuity.Among them,the cultural media industry is facing great opportunities and challenges under the great attention of the central government and governments at all levels.More and more cultural media companies have taken the steps of merger and reorganization.High premium merger and acquisition cases across regions and industries occur from time to time.Frequent merger and reorganization has gradually become a way for cultural media enterprises to expand their scale.Huayi brothers started its continuous merger and acquisition process after its listing on the shenzhen stock exchange in October 2009.From only having 6 wholly-owned or holding subsidiaries and 1 share-holding company,it has developed to 58 share-holding companies and 92 wholly-owned or holding subsidiaries or sun companies by the end of 2017.It can be seen that the expansion speed of its merger and acquisition,in addition to the film and television culture industry,its industrial chain layout began to involve real estate,games,leisure and entertainment and other aspects.Therefore,it is necessary to study the economic consequences of its continuous mergers and acquisitions.The case analysis method is adopted to study the economic consequences of mergers and acquisitions of selected enterprises.The main research contents are as follows: firstly,the status quo of mergers and acquisitions of listed companies in China and the causes of high premium are analyzed to provide support and help for subsequent analysis.Secondly,in the case of the introduction of the focus on its continuous mergers and acquisitions of the process and motivation analysis.Thirdly,the paper analyzes the performance of huayi brothers' continuous mergers and acquisitions from both short-term and long-term perspectives by using the event research method and the financial index method to discuss the economic consequences of huayi brothers' extension growth strategy.Through research and analysis show that huayi brothers early continuous acquisition in a certain extent,increased the enterprise short-term benefits,but with the increasing the number of mergers and acquisitions,m&a premium,huayi brothers continuous downturn late m&a market reaction,the indicators in the later a serious decline,at the same time facing the financial risk,even bankruptcy risk.On the basis of comprehensive analysis,the paper finally gives the overall conclusion and policy Suggestions: first,improve the quality of film and television works and enhance the financial competitiveness of the main business.Second,face up to the enterprise financial risk,optimize the capital structure.Third,strengthen the relevant diversification of investment,cautious expansion.Fourth,carefully select the object of merger and acquisition,reasonable valuation.Through analysis and Suggestions,we hope that the enterprise can develop healthily and greatly.It is also hoped that the research conclusions of this paper can provide help and reference for other enterprises in the same industry.