Research On Ultimate Controlling Shareholders’ Impact On M&A Performance Of Chinese Cultural Enterprises

All along, M&A was seen as an effective way to promote enterprise to allocate resources and to optimize the ownership structure. M&A is an important management strategy.Most companies want to enhance the value of the business through M&A.Whether M&A can improve the enterprise’s value or not?We found the answer are not.M&A even disturbed the normal production for some enterprise. This problem has caused concern of the academic and practice.The CSRC through inspection of this firms found that this is because someone wants to transfer the company’s assets out through M&A.While the ultimate manipulator behind the scenes is the ultimate controlling shareholder.In recent years the party central committee has always attached importance to cultural industry.Local governments have actively develop the cultural industry,while M&A is an important way.So the number of M&A of cultural enterprises continue to increase.so we will research of ultimate controlling shareholders’ impact on M&A performance of cultural enterprises.In this paper, we choose listed cultural enterprises data in 2007-2012 which M&A have taken place.We will research the ultimate controlling shareholder of the cash flow right, two rights separation degree will have what effect on the merger performance?And for different properties of ultimate controlling shareholders,the two rights separation degree will have what effect on the cultural merger performance. The empirical results show that:the cash flow right and the merger performance showed a stronger positive correlation,the two rights separation degree and the merger performance showed a stronger negative correlation.Then we divided those sample into government and non-governmental two groups.We found there is no significant relationship between the two rights separation and M&A performance controlled by the government. While the two rights separation and M&A performance still has significant negative correlation relationship another group. At last, the article proposes some policy suggestions based on the above findings.