| With the continuous development of China’s market economy,the scale of capital market funds is increasing,and the number and transaction amount involved in mergers and acquisitions are also increasing.In order to reduce potential risks such as information asymmetry in mergers and acquisitions,promote the smooth completion of mergers and acquisitions,and protect the interests of major shareholders and small and medium-sized investors,enterprises have widely adopted the method of signing performance commitments to safeguard their own interests,However,in the actual application process of performance commitments,often due to the inability of the acquired party to achieve the performance goals promised in the performance commitments and the insufficient performance compensation commitments to compensate for the losses of the acquiring party,the failure of performance commitment settings can cause significant negative impacts on the acquiring party,and even have a sustained negative impact on the future business development of the enterprise.Therefore,studying the actual effect of signing performance commitments in mergers and acquisitions has important practical significance for the acquiring company.On the basis of organizing existing literature on performance commitments,combined with relevant concepts and theories,this article selects Guangdong Dongfang Precision Technology Co.,Ltd.’s acquisition of Beijing Prade New Energy Battery Technology Co.,Ltd.as a research case to analyze the motivation for signing performance commitments and the effects it brings.Introduce the trading parties,the background and process of the merger and acquisition,and then analyze the actual effect of signing performance commitments based on the actual situation of the case.Then,this article analyzes the impact of performance commitments on the operating indicators of listed companies from the perspective of synergy effects,including operational effects,financial effects,and management effects,and judges the performance of the company and the synergy effect of the merger and acquisition.From the perspective of market response,this paper uses the event study method to analyze the excess return rate of enterprises with reference to the market return rate of Shenzhen Stock Index,and judge the short-term and long-term market response of their performance commitments.From the perspective of goodwill impairment,the impact of performance commitments on asset value was studied,and the reasons for not achieving the expected economic effects were analyzed.Through the above analysis,this article believes that the actual effect of Dongfang Precision’s performance commitment to Prade’s merger and acquisition is affected by factors such as performance commitment target design,high goodwill impairment of the company,and poor integration after the merger,resulting in overall poor performance.Although there is a certain positive impact on the short-term operating performance of the enterprise in the early stage of signing performance commitments between the trading parties,it has not had a long-term synergistic effect on the enterprise,market reaction Performance in areas such as goodwill risk plays a sustainable and positive role.At the same time,this article proposes targeted and specific improvement suggestions,hoping to provide a new perspective for similar enterprises that sign performance commitments in future mergers and acquisitions to cautiously view performance commitments.At the same time,it provides a certain degree of reference and reference for enterprises that are interested in signing performance commitments in mergers and acquisitions. |
