Analysis Of The Motivation And Effect Of The Gambling Agreement In The Process Of Donghu High-tech’s Acquisition Of Taixin Environment

In recent years,a series of policy documents issued by the state have greatly encouraged listed companies to conduct industrial mergers and acquisitions and financing.This is not only beneficial for companies to integrate and optimize resources,realize the purpose of transformation and upgrading,and improve market competitiveness,but also promote the transformation of economic growth patterns,adjust and improve the industrial structure.However,in the process of mergers and acquisitions,information asymmetry will generate merger risks.Therefore,the valuation adjustment mechanism of gambling agreement has emerged at the historic moment and has also been widely used in the market.So,in addition to reducing the risk of mergers and acquisitions,what are the motivations for the two parties to sign the gambling agreement,whether it really played a role in the merger,and what is the actual effect of its application? These issues are explored in this paper through the case of Donghu High-tech’s merger and acquisition of Taixin Environment.On the basis of sorting out relevant domestic and foreign literatures,this paper analyzes the merger and acquisition events of Donghu High-tech and the content of the gambling agreement,mainly explores the motivation for the signing of the gambling agreement between Donghu High-tech and Taixin Environment.And from the perspective of financial M&A effect and non-financial M&A effect,this paper analyzes the effect of the gambling agreement.In financial performance analysis,the effect of short-term mergers and acquisitions uses the event study method to show the changes in excess cumulative returns before and after the event of signing a gambling agreement and completing the event.The long-term M&A effect is evaluated by using the financial index analysis method and EVA analysis method to evaluate its long-term financial performance.In non-financial performance analysis,R&D investment,market size,and reputation are selected for analysis,and a comprehensive evaluation system is established through the fuzzy comprehensive evaluation method.On the basis of a series of analyses,this paper found that the short-term market response is not good when signing the gambling agreement,and investors have a positive attitude towards the completion of the gambling event.When studying the impact on the long-term financial performance of gambling mergers and acquisitions,through the horizontal and vertical comparison of various financial indicators,it is found that short-term solvency,profitability and growth ability all show synergistic effects on gambling mergers and acquisitions,and have a positive effect;calculated through a series of adjustments,the EVA value also obtained increased significantly in the post-merger period.In addition,from the perspective of non-financial performance,it can be concluded that the gambling agreement has brought a positive impact on corporate mergers and acquisitions.In the analysis and research,it is found that the asset structure is unreasonable,the efficiency of asset utilization is not high,the effect beyond the gambling period is not obvious,there is a downward trend,and the terms of the gambling agreement are single.So,this article proposes to combine with flexibility,focuse on post-merger integration,improve asset utilization efficiency and strengthen supervision,etc.,in order to maximize the effect of the gambling agreement,and also provide some reference for other companies.