The Influence Of Performance Commitment On M&A Performance On Perfect Global M&A Perfect World

Since 2013,a boom in mergers and acquisitions of games and film industries and television emerged,with dozens of listed companies disclosing their merger and acquisition plans.Acquisition premium high become the characteristics of the gaming industry mergers and acquisitions,although after 2014 years regulators to make clear if dispute between affiliated enterprise of mergers and acquisitions do not mandate the performance commitment,due to the asset-light nature of game enterprises,it is difficult to accurately estimate their value,so game enterprise mergers and acquisitions will mostly carry out performance commitment.The purpose of game enterprises to introduce performance commitment agreement is to improve their M&A performance,but excessive performance commitment will have a negative impact on corporate performance.Therefore,this paper explores the impact of performance compensation commitment on corporate M&A performance by analyzing the case of perfect world in perfect global M&A.In this paper,the perfect world and its comparable enterprise network are compared to explore the impact of performance commitment on M&A performance.Firstly,this paper USES the event study method to compare the impact of performance commitment on the short-term performance of the perfect world and the game network.Then,this paper uses the methods of financial index analysis,EVA analysis and DEA evaluation to evaluate the impact of performance commitment on the long-term performance of perfect world and game network from the perspective of benefit and efficiency.Finally,the paper analyzes the influence of acquisition premium caused by performance commitment on the performance of game network and perfect world.The research of this paper finds that the performance commitment in the M&A transaction will improve the level of synergistic effect,improve the efficiency of M&A and promote the progress of M&A.At the same time,performance commitment can not only significantly increase the premium of M&A activities,but also increase the return of the shareholders of the acquiring party.In the short term,performance commitment can significantly improve the M&A performance of enterprises,while in the long term,the degree of performance commitment to reduce the enterprise risk is not significant.