A Study On The Motivation And Performance Of Shenyin Wanguo's Merger And Acquisition Of Hongyuan Securities

Since the nineteenth century,western developed countries have completed five large-scale mergers and acquisitions.Today,with the rapid development of the global economy,Chinese enterprises should adapt to the global development model,expand market share and improve enterprise value through various forms of mergers and acquisitions.With the gradual expansion of the domestic capital market and the continuous improvement of the financial system,the securities industry has ushered in new opportunities for development.At present,the domestic securities industry is dominated by small-scale securities companies.The characteristics of small-scale and weak strength restrict the further development of China's securities industry.Mergers and acquisitions have become an effective way for the sustainable development of securities companies.Shen Wanhongyuan's horizontal mergers and acquisitions have enhanced the market control of enterprises,increased the value of enterprises,improved the basic structure of the securities industry,and had a far-reaching impact on the pattern of the securities industry.Mergers and acquisitions can greatly shorten the time of Shenyin Wanguo's listing,obtain more strategic opportunities,give full play to their respective advantages,generate regional linkage,achieve economies of scale,and maximize synergies.Mergers and acquisitions can rapidly expand the scale of enterprises,but it is not a simple thing to be bigger and stronger.The integration problem in the later stage of mergers and acquisitions is very critical,so it is particularly important to study the motivation and performance of securities mergers and acquisitions.This paper chooses Shenyin Wanguo as the largest case of merger and acquisition in securities industry,and takes it as an example to study and analyze the motivation and performance of merger and acquisition.This article mainly carries on the research and analysis from six aspects: The first chapter is the introduction,which elaborates from six aspects: research background,theoretical significance and practical significance,research content,research ideas,domestic and foreign literature review,research deficiencies and innovation,to improve the theoretical basis of the paper.The second chapter first introduces the relevant theoretical basis of this paper and combs the relevant research of scholars at home and abroad.Secondly,it analyses the main motivation of M&A in China,and uses financial analysis,economic value added method and event study method to analyze the performance of M&A.Chapter 3 introduces the case of Shenyin Wanguo Exchange to absorb and merge Hongyuan Securities.Firstly,it introduces the securities market of our country and the basic situation of two merger and acquisition companies,and analyses the whole process of merger and acquisition in detail.Finally,it points out the characteristics of this merger and acquisition.Chapter IV mainly analyses the reasons why Shenyin Wanguo chose Hongyuan Securities to merge and why Hongyuan Securities accepted Shenyin Wanguo's mergers and acquisitions from both external and internal motivations.The fifth chapter mainly studies the performance of Shen Wanhongyuan's M&A cases by means of financial index method,economic value added method and event study method,and analyses whether Shen Wanguo's M&A of Hongyuan securities has achieved synergistic effect and brought value to enterprises.The sixth part is mainly the conclusion of this case study and the Enlightenment from the case of Shenyin Wanguo's stock exchange merger and acquisition of Hongyuan Securities,giving some useful suggestions to the whole securities industry.