Research On The Impact Of Cross-border Mergers And Acquisitions On The Performance Of Cultural Enterprises

The 13 th Five-Year Plan clearly indicates that China’s current cultural industry is in a stage of rapid development,and this stage of development can effectively help other industries in China to complete industrial transformation and further drive the development of China’s economy.Since the cultural industry has a broad development prospect,in order to ensure the development and upgrading of cultural differences and better occupy the market,many cultural enterprises want to enhance their market competitiveness by means of merger and acquisition.This paper by the method of empirical analysis of transnational merger and acquisition the cultural enterprises operating performance,the influence of the Hoyts cinemas and choose wanda film m&a cases,motivation and performance study,according to the results of the study and reference of the current our country market and policy environment,the corresponding conclusion is obtained,and put forward the corresponding solution,in order to effective experience as a cultural industry mergers and acquisitions.Wanda Cinema Line Co.,Ltd,a subsidiary of Wanda Group,is the No.1 Cinema operator in Asia.At the end of 2015,Wanda completed the merger and acquisition with Hoyts Cinema Line in Australia,which is also the first overseas merger and acquisition plan independently completed by Wanda Cinema.Taking this as the research object,this paper further explores the causes of mergers and acquisitions and correlates them with business performance.First of all,this paper mainly introduces the background and significance of the research,combs the relevant literature at home and abroad from the following three aspects,and elaborates the M&A performance and M&A motivation theory in detail.In terms of motivation of M&A,it mainly includes realizing synergistic effect,climbing global value chain,layout of global supply chain and optimization of product structure.In terms of performance factors,the main factors are the distance of the host country,the culture of the host country,the mode of payment and the scale of the enterprise.In terms of M&A performance,there are mainly financial performance and non-financial performance.Secondly,it summarizes and sorts out the development status of cultural industry and M&A status.The development status of cultural industry is mainly shown as the tertiary industry,compared with the primary industry and the secondary industry,has a slower growth rate,but accounts for a larger proportion of GDP and a stable growth.The current situation of mergers and acquisitions in the cultural industry mainly shows that the number of mergers and acquisitions reached the peak in 2017 and dropped to the lowest in 2020.Investors gradually tend to be rational and prefer technology-driven and differentiated enterprises.At the same time,this paper makes an empirical analysis on the financial data of listed companies in the cultural industry from 2011 to2019 by using the method of multi-phase differential analysis.The empirical results show that cross-border M&A has a significant positive effect on the operating performance of cultural enterprises.Then,it introduces the merger case of Wanda Cinema and Hoyts Cinema Line,including relevant information and specific process.At the same time,the reasons for the merger plan are further explored,including the diversification of strategic transformation,the realization of synergies and the search for economies of scale.At the same time,the grey relational analysis method is used to analyze it from multiple perspectives.In terms of finance,the desired index system is established,including four first-level indicators,including four aspects of profit,debt paying,operation and growth,and 14 second-level indicators.Through these indicators,this paper analyzes the impact of the M&A event on performance,and finally draws the corresponding conclusions.Based on the conclusions,targeted solutions are proposed.The conclusions are as follows:(1)Motivation of Wanda Films’ merger and acquisition of Hoyts Cinemas:influenced by the market competition environment,coordination benefits and scale benefits of merger and acquisition can,to some extent,enable the company to obtain more resources,better improve brand influence,and finally complete the globalization strategy of the enterprise.(2)From the perspective of M&A performance,the short-term effect is positive.The profitability of the enterprise has been improved to a certain extent,the management level of fixed assets has been improved to a certain extent,and the debt paying ability and growth ability have been reduced to a certain extent,but the decline range remains within the normal range.Synergistic effects have been achieved in internal integration and strategy implementation.(3)From the empirical results,cross-border mergers and acquisitions have a positive impact on the business performance of cultural enterprises.From this point of view,we can find that cross-border M&A will not have a positive impact on all aspects of the enterprise,but according to the grey correlation coefficient,cross-border M&A has a positive impact on the overall performance of the enterprise.The enlightenment of this activity is that transnational mergers and acquisitions should make clear the motives of mergers and acquisitions,choose the appropriate merger objects,carry out diversified management and pay attention to the risk.