Research On Financial Performance Evaluation Of WD Film M&A WD Pictures

With the continuous growth of the strength of enterprises of our country,merger and acquisition is regarded as a kind of effective tools that can become larger and stronger quickly,it has become a universal capital means in the market.Enterprises can make use of strong capital allocation ability to carry out mergers and acquisitions,so as to improve the overall management structure of enterprises.With the rapid development of our market economy and the strong support of the policy,the cultural industry promotes the film industry.Driven by the activity,the desire of enterprises to seek breakthrough development becomes more urgent.Mergers and acquisitions can not only lay out the upstream and downstream industrial chain and create a film group integrating film and television,but also integrate more competitive business modules,thus improving the overall development level.In this context,this paper takes WD film as the research object to evaluate and study its financial performance before and after M&A activities.As a leading enterprise in the national cultural industry,WD Film completed the merger and reorganization of WD Film and Television in 2019,completing the industrial chain of film and television sector in WD film business.Firstly,relevant literature on M&A and reorganization and financial performance was sorted out,concepts and theories related to M&A were summarized,and synergistic effect theory,market power theory and efficiency theory were concluded.Secondly,it introduces the basic situation of WD film.After reviewing the whole process of WD film’s acquisition of WD Film and television,it introduces the changes of financial situation before and after the acquisition.Based on the financial data of WD film from 2015 to 2021,Based on the principle of index selection,13 financial indicators such as net interest rate on sales,return on equity,turnover of total assets,asset-liability ratio and growth rate of operating revenue are selected from four aspects,including profitability,solvency,operating capacity and growth capacity,to construct a financial performance evaluation system.Moreover,according to the industry classification of China Securities Regulatory Commission,24 film and television companies such as Bona Film,WD Film,Huayi Brothers and China Film were selected as samples for statistics.Then factor analysis method was used to calculate factor scores and comprehensive scores,and horizontal evaluation was made on WD film’s financial performance.After that,it makes a longitudinal evaluation from four aspects: profitability,operation ability,debt paying ability and growth ability.Then,according to the evaluation results,it finds out the influence factors and analyzes the influence results of financial performance,and puts forward suggestions for improvement on the problems arising in the operation process after the merger.