Empirical Analysis On Film And Television Industry M&A Synergy Effect Of Chinese Listed Companies

Throughout the world today’s large enterprises,almost no one is not through mergers and acquisitions to become bigger and stronger.In order to seek the rapid development of enterprises,mergers and acquisitions in China’s capital market have been booming since2010.With the tide of capital,China’s film and television industry experienced a merger boom from 2013 to 2015.In the second half of 2016,the wave of mergers and acquisitions in the film and television industry receded as regulations became stricter.However,whether from the development process of the global film and television industry or from the needs of its own development,the film and television industry M&A is an inevitable trend.After expounding the research background,significance,research methods and ideas,this paper expounds the definition and classification of M&A and M&A performance,and reviews the theoretical and empirical research results of M&A performance at home and abroad.Then,the paper studies and analyzes the status quo and motivation of mergers and acquisitions of listed companies in China’s A-share film and television industry.Finally,the qualified M&A events were selected from the M&A transactions of A-share listed companies in the film and television industry from 2011 to 2017 as samples,and the M&A performance was empirically analyzed by combining the financial index method with the factor analysis method.From the research results of this paper:Firstly,the M&A performance of the M&A company in the year of merger and in the year after merger is higher than that of the year before merger.From the 1st year after merger to the 2nd after two years,the M&A performance continue to fall below that of the year before merger.This shows that M&A brings positive M&A performance to listed A-share film and television companies in the short term,while the long-term M&A performance is negative.Secondly,different types of mergers and acquisitions also have different impacts on the performance of mergers and acquisitions.Among them,the performance of vertical mergers and acquisitions is the best,while that of horizontal mergers and acquisitions is the lowest.According to the research results of this paper,the author puts forward some Suggestions on the mergers and acquisitions of film and television companies for the reference of listed companies and regulators:Firstly,listed companies should consider what type of merger and acquisition to take into account the needs of their own business development.Horizontal mergers and acquisitions are adopted to expand the business scale of enterprises and strengthen the competitiveness among the industry,but the increase in operating costs caused by the expansion of scale should be avoided to reduce the performance.Vertical mergers and acquisitions are beneficial to the layout of the industrial chain,but it is necessary to pay attention to the integration of resources and the increase of management costs after mergers and acquisitions.Because the industry has entered a new industry after the transformation,after the short-term performance of the promotion,it is easy to quickly decline,and the future performance is unpredictable,enterprises should be especially cautious in choosing transformational M&A.Secondly,when the listed company chooses to use cash to pay the price of merger and acquisition,or stock payment,or cash and stock mixed payment,it should consider the different impact of various payment methods on the operating performance of the enterprise.Thirdly,the listed companies should pay attention to the rationality of valuation when selecting the target enterprises,and avoid blindly carrying out mergers and acquisitions at a high premium.At the same time,the strategic integration of both sides after the merger and acquisition is emphasized to improve the business performance.Previous mergers and acquisitions to the goodwill of the enterprise need to be got the impairment test timely.If impairment is really needed,it can be considered to be fully accrued in the current year to reduce the adverse impact of goodwill on the future development of the enterprise.Fourthly,the regulatory authorities should strictly examine the mergers and acquisitions in the film and television industry,especially those with high premiums and high performance commitments.At the same time,we should also consider the development needs of the large-scale collectivization of the company,and provide positive policy guidance and support.The innovation of this paper lies in the fact that it is different from the event research method and case analysis method which are commonly used in the M&A performance research of film and television industry.This paper selects 18 mergers and acquisitions of17 A-share film and television listed companies from 2012 to 2017 as research samples,and adopts the financial index analysis method to study the M&A performance of the acquiring company.The time span is long and the samples are representative in the industry.At the same time,from the profitability,operation,solvency,and growth of four dimensions,select 11 financial indicators to construct the evaluation system,and USES the factor analysis method to extract 11 public factor of financial indicators,comprehensive scoring model and calculate the total score of M&A performance,and then the calculation results are quantitative research and performance evaluation of M&A and analyze the reasons.Finally,on this basis,the performance of different types of mergers and acquisitions are calculated and analyzed respectively,and corresponding Suggestions are put forward.