A Study On The Impact Of Cross-Border Mergers And Acquisitions On Corporate Performance

The sports goods industry started relatively late in China.Before and after the 2008 Beijing Olympic Games,the country vigorously promoted the national fitness campaign,which promoted the sports goods industry into a period of rapid development and the major brands expanded rapidly.However,the almost crazy expansion of the sports goods enterprises encountered inventory crisis,resulting in varying degrees of losses.After this period of oscillation,most of the sports goods enterprises began to adjust their own business strategy,trying to get out of the predicament.Based on the above background,Anta Group,the leading enterprise of Sports goods industry in China,is selected as the case object to study its merger and acquisition of Amer Sports.Anta’s merger and acquisition of Amer Sports is the largest transnational merger and acquisition in the sports goods industry.It is of great significance to study the impact of this transnational merger and acquisition on Anta Group’s corporate performance.In this paper,the cumulative excess rate of return during the event window of Anta’s acquisition of Amer Sports is calculated using event study,and then the financial index method is adopted to calculate and analyze from four dimensions of profitability,solvency,operating capacity and development capacity.The results show that: From the perspective of short-term performance,the market value of Anta Group shows a downward trend,the return rate of individual shares is lower than that of the overall market,and the cumulative excess return rate is always less than 0 during the event window,which indicates that Anta Group is not favored by investors in the M&A process,and the acquisition of Amer Sports has a negative impact on the short-term value.From the perspective of medium and long-term performance,although M&A occupies a large amount of cash flow,reduces the solvency of the enterprise and restricts its operating capacity,its profitability generally keeps rising.Amer Sports,with the help of Anta,has made rapid progress in the Chinese market,and its profitability and operational capacity have both improved by leaps and bounds.Although its solvency has declined during the rapid expansion,the company has great potential for development.Finally,based on the above conclusions,this paper puts forward the problems and improvement methods that sports goods enterprises need to pay attention to when conducting mergers and acquisitions.