Research On Intention And Business Performance Of Merger And Acquistion Among Cultural Enterprises

Held in 2013,the Third Plenary Session of the 18 th CPC Central Committee which set the tone and guidelines for the development of China’s cultural industry has drawn an unprecedented attention to this area.More relevant policies were introduced in 2014 for further support of its development.And by promoting its integration with other industries,an idea of common development is also expected to achieve.Since the 13 th Five-Year Plan was put forward,our country’s emphasis on cultural industry has risen to central strategic level,aiming at making it the pillar industry of the national economy by 2020.It is exactly the tremendous growth potential of this developing industry that appeals to more and more cultural enterprises who are eager to achieve their own upgrade and development through "marriage",i.e.Mergers and Acquisitions(M&A).However,such behavior does not always bring positive effects to enterprises.With what kind of intention do the cultural enterprises choose M&A? What kind of impact will it make on the business performance? And what kind of role will this impact play in the future development of the enterprises? Such issues deserve our deeper exploration and research.As a starting point,this paper selects HLBN’s merger and acquisition case of Blue Flame to study the intention and business performance of mergers and acquisitions of Chinese cultural enterprises.This M&A case,which took place in 2014,was evaluated as the largest one at that time,not only with certain representativeness but also a high degree of timeliness.The article firstly introduces the significance of case study,based on which it lists the related Chinese and foreign literature.Secondly,the relevant concepts and theories are defined and illustrated respectively.For the next part,it conducts a detailed discussion of the intention of HLBN’s case from both inside and outside situations,by introducing the basic situation of both enterprises,laying out the complete procedure of this merger and analyzing its features.Then,combining with the characteristics of cultural industry,an analysis of its business performance is carried out from short-term,long-term and non-financial perspectives.And finally it draws several conclusions that HLBN’s M&A case proves to have won significant recess returns for its shareholders,which has also received a wide acknowledgement from market.As for the long-term performance,M&A has immensely increases both the operating revenue and the scale of the enterprise while the operation ability has also been improved compared with before.Due to the raising funds and assert injection of the merged,however,the proportion of operating costs have accordingly increased,leading to a decline in profitability.And considering the product service and innovation ability,the non-financial performance of HLBN meets a new achievement after M&A and the future development prospects will be optimistic.At the very last of this article,it puts forward the corresponding countermeasures to the problems existing in this case,with the purpose of providing some reference for the future merger and acquisition among cultural enterprises.