Research On The Risk Response Of Performance Commitment In The Merger And Reorganization Of Listed Companies

With the improvement of economic globalization and increasing competition in the market,more enterprises improve their competitiveness and achieve strategic objectives through the form of mergers and acquisitions,and due to the maturity of the western capital market and the increasing frequency of merger and acquisition transaction activity,the performance commitment is born.In essence,the performance commitment is a choice of uncertainty about the future performance of enterprises.On the one hand,the performance commitment is based on the protection of the interests of both parties to the merger and acquisition signed,on the other hand,the performance commitment for the achievement of performance indicators,give the merger and acquisition of a certain amount of pressure.While high performance commitments can be expected to generate high profit returns for both parties,high returns mean high risk and low rate of actual commitment fulfillment.If the achievement of the performance target after the signing of the agreement,the acquirer will face the risk of high compensation.Although the acquirer must be compensated,but in the case of the bursting of the high-premium bubble,the value of the acquirer's enterprise slower,the corporate image is damaged,affecting the future business conditions of the enterprise.Based on the above background,this paper selects the case of Dongling International Merger and Acquisition of Sino-Agriculture International,uses the literature research and case analysis method,starts with the theory,combs the current situation of domestic and foreign research,and expounds the relevant theory of performance commitment.Combined with the case,this paper introduces Dongling's international performance commitment,and the reasons why Dongling's international performance commitment has not been fulfilled,studies and analyzes the different risks brought about by Dongling's international performance commitment stoain in different periods.And finally puts forward the relevant recommendations and policies.Based on Dongling International M.and Party perspective,in the performance commitment signed before,during the implementation period and performance commitment signed after the failure of the three stages of merger and acquisition transaction activity,in the face of high performance commitment,analysis of Dongling International in the merger and acquisition transaction sitinful risk.At the same time,a brief response strategy,in order to improve the enterprise in the merger and acquisition transaction,improve the risk assessment system,enhance risk management concept,improve the probability of achievement of the performance commitment target,to achieve the expected objectives of the acquisition to provide theoretical guidance.