A Study On The Economic Consequences Of Performance Commitments In Cross-border Mergers And Acquisitions ——A Case Study Of X Enterprise

Faced with the rapid integration of intelligent technology and economy,the development of traditional enterprises has stepped down from the "high speed" and encountered obstacles that are difficult to overcome.Therefore,most traditional enterprises use cross-border mergers and acquisitions to break through the limitations of development,and mergers and acquisitions can effectively help listed companies to obtain high-quality resources,complete strategic transformation and so on,so as to increase the competitiveness of enterprises in all aspects.As the validity of performance commitment agreement is gradually recognized in law,more and more enterprises choose to adopt this method to reduce the risk of mergers and acquisitions.However,with the expiration of the commitment period,the follow-up problems are gradually exposed,the frequent appearance of performance commitment agreements in the market has not improved the current situation of M ＆ A in China,the success rate of M ＆ A is still not effectively improved,and even some enterprises have lost their original good development due to the blind application of performance commitment mechanism,and have fallen to a low ebb.Therefore,in order to fundamentally improve the effectiveness of the performance commitment mechanism,promote the healthy development of the M ＆ A market,and realize the real value of the performance commitment agreement,this paper chooses the direction of M ＆ A which has been more frequent in recent years,and takes the event that the traditional enterprise X has repeatedly adopted the performance commitment agreement to enter the cultural film and television industry and finally ended as the research object.And to indicate the conclusions and related recommendations drawn therefrom,So as to improve the success rate of M ＆ A market and enhance the ability of market resource allocation.This paper first briefly describes the research background and significance of performance commitment agreement,and then summarizes the domestic and foreign literature from various perspectives of performance commitment agreement and M ＆ A performance,and then briefly introduces the research content and methods of this paper,and lists the concepts and theoretical basis related to this paper.Then it introduces the cases of the acquirer X and the acquired W,M,Z,and analyzes the long-term economic consequences from the factor analysis method and the short-term economic consequences from the event study method,and points out the problems and related suggestions in the use of performance commitment agreements in M ＆ A transactions.Finally,it summarizes this paper.In this paper,X enterprise has adopted the performance commitment agreement for many times,but only one time has reached the standard accurately,and the final result of M ＆ A is unsatisfactory,even becoming a * ST enterprise itself,which shows the problems in M ＆ A transactions.By comparing and analyzing the specific content of the performance commitment agreement and the long-term and short-term economic consequences,the following conclusions are drawn: First,enterprises should fully investigate and prepare before cross-border mergers and acquisitions.Cross-border mergers and acquisitions are conducive to the development of enterprises from the motive,but things always have two sides,and the advantages correspond to the disadvantages.Therefore,enterprises should fully investigate whether the acquiring party,namely their own enterprises,and the acquired party,namely the target enterprise,are really suitable for this behavior before cross-border mergers and acquisitions,and what the results will be if they fail.As well as the future trend and policy development of the target industry,will have an impact on the results of cross-border mergers and acquisitions,mergers and acquisitions need detailed and careful investigation and estimation,and ultimately make decisions.Secondly,the performance commitment agreement should be adopted in M ＆ A transactions,but it should be used cautiously.The application of performance commitment can effectively reduce the risk of mergers and acquisitions,but it is not the application of performance commitment that can effectively avoid the related risks.The acquirer and the acquiree should consider carefully to avoid blindly following the trend and using performance commitment compensation indiscriminately,which will cause adverse effects on the enterprise itself.At the same time,multiple factors should be considered in setting up performance commitment compensation.As a supplementary part of the merger and acquisition agreement,many enterprises are motivated to apply the attitude of preparedness,but do not attach importance to it,and the setting of the performance commitment agreement is also stereotyped,without considering the actual situation of the enterprise,resulting in most of the performance commitments failing to play their due role.Therefore,both the acquiring party and the acquired party should pay attention to any details in the agreement,be flexible in the face of the characteristics of different industries and the particularities of different enterprises,and find highly compatible agreement terms on the basis of national policies,so as to truly promote the positive development of the M ＆ A market.