Research On Diversification Merger And Acquisition Performance Of The Great Wall Of Culture

In recent years,with the rapid development of China’s capital market,achieving the optimal allocation of market resources,mergers and acquisitions has become one of the important means for enterprises to widen its commercial landscape.At present,Chinese economy is in a critical period of economic transformation and upgrading.The developing rate of traditional industries continues to slow down,and the profit declines rapidly.As a result,endogenous growth cannot meet the goal of enterprise profit and exogenous development has become an important way for enterprises to rapidly improve their own strength and economic benefits.Based on their own advantages and present situation,a large number of listed companies which engage in traditional industries,break through the conventional industry mergers and acquisitions,use the way of asset reorganization epitaxial fusion with high potential of emerging business,and overtake a cross-industry mergers and emerging business,to carry on the strategic transformation,to adjust the structure of the business,complementary advantages and disadvantages,and to improve the whole efficiency of the company.Thus,the company will step on the diversified developing road.However,it has become a problem for academic and practical circles whether the diversification of mergers and acquisitions can improve the performance and value of enterprises.On account of the above background,the article refers to the case of diversified M&A of the Great Wall Of Culture as the researching subject.Firstly,it introduces the connotation of diversified culture and the evaluation method of its performance.Secondly,according to the basic situation of both sides of the merger and acquisition,it sorts out the case of diversified M&A in several aspects including the motivation of M&A,the process of M&A and the possible risks of M&A.Thirdly,this thesis analyzes the performance of enterprise diversified M&A.The specific way can be shown evaluating the short-term performance through the changes of stock price and the event study,constructing the long-term performance evaluation system by using the comprehensive evaluation scoring method and making use of the non-financial index to carry on the analysis,in order to test whether the M&A behaviors has reached the expected goal.Finally,the conclusion can be drawn: diversified M&A makes the Great Wall Of Culture gradually get out of the predicament of losing traditional business and realizes the strategic goal of developing education industry.The steady strategic transformation promotes the long-term development of the enterprise.The Great Wall of Culture belongs to the traditional enterprises.It is a successful move of diversified mergers and acquisitions through the diversified acquisition of educational enterprises into the new field of education industry.And,its M&A experience can be used for reference by many established enterprises,in order to get rid of the bondage of traditional industry developmental delay.