Performance Analysis Of M&A Under The Background Of Gambling Agreement

Along with the rapid economic development and China’s capital market gradually perfect,a lot of fast development of enterprises to choose through merger and acquisition integration of industry resources,expanding market share,or other industry industry mergers and acquisitions to expand new areas and improve their own industry chain,to unearth the new stock and obtain certain benefits.However,the capital market is not a perfect market,and investors will face a variety of merger and acquisition risks in the investment process of merger and acquisition.Therefore,enterprises usually sign betting agreements during merger and reorganization to protect the rights and interests of the acquirer.In order to study the performance of mergers and acquisitions of listed companies under the background of signing matching gambling agreements,as well as the motivations and actual economic effects of the application of matching gambling agreements,this thesis uses literature research,case study and event study methods,and selects Huayi Brothers,a listed company in China’s film and television industry,as a case study,to make a specific analysis of its three gambling m&a events from 2013 to 2015.Firstly,this thesis uses literature research method to sort out the existing literature and theories,and sort out the definition,types,definition and constituent elements of enterprise merger and acquisition,as well as evaluation methods for short-term and medium-and long-term performance of enterprise merger and acquisition.Again at the same time to sort out the historical enterprise mergers and acquisitions on the agreement on China’s capital market,the number of enterprise mergers and acquisitions using bet against the agreement of the distribution and the related industries on the completion of the agreement,it can be seen that bet introduction in merger and acquisition agreement guarantees protection of the rights of acquiring firm practices in the Chinese capital market is growing popularity.Secondly,the case analysis method is adopted to huayi brothers to bet on three times of mergers and acquisitions in recent years is analyzed,mainly including introduce the basic situation of both mergers and acquisitions,mergers and acquisitions motivation and m&a process and using event study method and financial index analysis method to analyze enterprise short-term and long-term performance of m&a and think in the short term,mergers and acquisitions and bet agreement signed makes the company’s share price rise,Bring some good news;However,in the long run,the long-term economic benefits of huayi Brothers’ series of matchmaking mergers and acquisitions are not ideal due to the rising asset-liability ratio caused by high-premium mergers and acquisitions and the decline of net profits caused by poor completion of performance matchmaking agreements.Through the analysis of the motivation of signing the betting agreement in enterprise M&A,it is found that the signing of the betting agreement is mainly to ease the investment risk caused by information asymmetry,reduce the cost of m&a and stimulate and restrain the management of the acquired party.Bet against the agreement,the impact on the m&a events can from before mergers and acquisitions in the three periods for analysis,among them,before the deal is the main influence of the valuations of the enterprise,mergers and acquisitions party in m&a mainly affects the operating performance of the enterprise mergers and acquisitions party status,mainly affect the m&a party enterprise after m&a goodwill.Finally,based on the above research process to get this thesis research conclusion,think although bet agreement in the event of mergers and acquisitions of our country the increase in the number of applications,but the case series of huayi brothers bet is not a good idea to the real benefits of the merger and acquisition and merger and acquisition both sides management in bet against the terms agreed when prudence,optimism is very important reason lead to ultimate bet against failure.At the same time,the author puts forward some suggestions to solve the problems in the practice of p MA: before p MA,we should strengthen the control of macro market and policy,avoid the valuation of p MA with high premium and set the commitment target of p MA reasonably.This article selects the huayi series bet on mergers and acquisitions as an example,analyzes the performance of the film and television industry diversification m&a and bet agreement in the high premium m&a impact on mergers and acquisitions,and according to the research conclusions related Suggestions are given,expect to improve the current status quo of film and television industry mergers and acquisitions blind worship bet agreement,regulate the behavior of enterprises mergers and acquisitions.