Performance Analysis Of Cross-border Mergers And Acquisitions Of Dongwang Company

In recent years,in order to adapt the adjustment of industrial structure and to seek transformation actively,the listed companies of traditional industries have adopted the way of mergers and acquisitions of related enterprises in emerging industries to achieve the purpose of diversification.Many listed companies fail to achieve good performance in cross-border mergers and acquisitions,and some companies even split up soon after cross-border mergers and acquisitions.Therefore,a comprehensive and scientific understanding of the effect of cross-border mergers and acquisitions on corporate operation is crucial.The purpose of this paper is to study the impact of Dongwang company cross-border mergers and acquisitions into the cultural media industry and analyze the problems existing in the process of its transformation.Firstly,the background and importance of the research on the performance of cross-border M & A are elaborated,and the related literature and theories of cross-border M & A and its performance are sorted out.Secondly,it analyzes the cross-border M & A cases of Dongwang company,introduces the M & A situation of cultural media industry,the motivation and the process of M & A.Thirdly,using event study method,traditional financial index method and factor analysis method,this paper makes a comprehensive analysis on the short-term and long-term performance of cross-border M & A of Dongwang company and makes horizontal and vertical comparison.This paper finds that after cross-border M & A,Dongwang company entered the cultural media industry,which made its main business add new cultural media business,and then achieved diversified development,but the long-term performance is poor;Overall,the performance of crossborder M & A of Dongwang company is not ideal.Aiming at the problems in the preparation stage,the implementation stage and the integration stage,the paper puts forward suggestions for improvement at all stages,mainly including the establishment of professional M & A team,the M&A activities carried out with the development strategy and the ample investigation,raising the ability of financing payment and improving the performance compensation mechanism,reintegrating the enterprise development strategy and constructing the group.The company should strengthen the integration of mechanism,pay attention to cultural differences,formulate moderate transition policies,implement talent introduction policies and do a good job in the integration of assets and finance.