Research On The Identification And Prevention Of Performance Commitment Risks Of Listed Companies

With the continuous deepening of China’s reform and opening up,the capital market is becoming more and more perfect,and the domestic corporate mergers and acquisitions market will continue as a result of the“dual cycle”,“industrial upgrading”,“state-owned enterprise reform” and“high-quality development” proposed at the national strategic level fiery.But at the same time of corporate mergers and acquisitions,the risks are often greater than the estimated benefits.In order to avoid the risk of mergers and acquisitions caused by information asymmetry,performance commitments emerged as a valuation adjustment mechanism in the Chinese market and quickly seized the market.However,in actual operations,performance commitments bring huge risks while avoiding risks.Frequent occurrences of under-performance commitments,"three highs",performance diving,and stock price crashes have caused huge losses to the acquirer and severely undermined market confidence.In order to effectively prevent the risks,improve the performance and success rate of corporate mergers and acquisitions.This article is committed to building a set of performance commitment risk evaluation system,using scientific technology and methods to effectively identify and evaluate the risks of performance commitments in mergers and acquisitions.First of all,this article sorts out the relevant literature on performance commitments at home and abroad,understands the current research status of performance commitments,and further analyzes the related theories of performance commitments,and systematically expounds the theoretical basis of performance commitments and performance commitment risks.On this basis,an analysis of the overall status of my country’s performance commitments revealed that the phenomenon of failure to meet performance commitments in my country is more common,and the risks brought by performance commitments cannot be ignored.In this context,this article studies the related methods of risk identification and selects HMM(Hierarchical Holographic Modeling Method)to identify the risk of performance commitments of listed companies in my country.After that,combine the analytic hierarchy process and fuzzy evaluation method to construct the performance commitment risk evaluation system,and comprehensively evaluate the performance commitment risk.Finally,in order to combine the theory and practice of the research and better apply it to the real society,this paper selects ST Victory,which has undergone many mergers and acquisitions and set performance commitments,to conduct case analysis and put forward relevant suggestions for risk prevention.Using the specific application of the theory in the case analysis,summarizing the rules,and enlightening how to identify and prevent risks when setting performance commitments in the merger and reorganization of listed companies in my country,improve the performance of mergers and acquisitions,and promote the sound development of the merger and acquisition market.