Research On The Relation Between M&A Directions And Cultural Enterprises’ Competitiveness

As a means of denotative development, merger and acquisition is an important approach for enterprises to achieve fast growth, also is an integration mechanism of the regulatory mechanism of enterprise boundary and resources configuration mechanism. Major policies for cultural industry in recent years reveal that promoting M&A and reorganization has become a significant strategy for the acceleration of cultivating leading cultural enterprises, developing the cultural industry and improving the cultural market system. In the policy-orientation and internal integration environment, mergers and acquisitions have attracted increasing attention from cultural enterprises and the capital market. The development of Disney and other internationally well-known cultural groups also confirms the necessity and effectiveness of mergers and acquisitions. The M & A activities must be accompanied by the decision-making of M & A direction. As the choice and determination of the optimal path within the feasible region, M & A direction is at the core of linking the M & A activities and M & A performance, also is the key nodes of existing policies in playing their promoting role, and its economic consequences also has two sides. Consequently, it has important research significance. Based on acquiring firms, the paper researches and analyzes M & A events of A-share listed cultural companies during 2008-2013. Fully considering the existing institutional background and the characteristics of cultural enterprises, this paper probes into the characteristics of cultural enterprises’ M & A direction from three dimensions:region, industry and property-rights attributes and analyzes the mechanism of how M & A direction affects the competitiveness of cultural enterprises. Finally the empirical research tests the influence of different directions of M & A on competitiveness of cultural enterprises after M & A activities. The research, in theory, helps to deepen the understanding of policies for the cultural industry and the decision-making of M & A direction, and is of great significance to enrich the basic theories of cultural enterprises’ M & A.The paper argues that M & A direction is the external form of enterprises’ internal resources gap needed for the development, the internal driving force of M&A direction is to consolidate and enhance the competitiveness of the cultural enterprises after the merger, but the decisions are also affected by factors such as policies, institutional barriers. According to the " promoting cross-regional, cross-industry and cross-ownership mergers and reorganizations for cultural enterprises" policy guidance and classical literature analysis, to build the analytic framework of the paper, the paper integrates the three dimensions of region, industry and property-right attributes in choosing M&A direction, and involves cultural enterprises’ competitiveness.The paper examines the effect of M&A from competitiveness of social benefits and economic benefits. In the empirical research of the impact of M&A direction on cultural enterprises’ competitiveness, the M&A direction is introduced into the multivariate statistical regression model to verify whether it is the significant factor influencing the cultural enterprises’ competitiveness, on the basis of the control of other factors. Research shows that:from 2008 to 2013, driven by policies, M&A direction has certain changes, and the number and proportion of cross-regional M&A increases. But with the existing institutional background, the selection of region, industry and property attribute does not significantly affect the cultural enterprises’ competitiveness. In particular, cross-regional, cross-industry and cross-ownership M&A are not necessarily better.Creative point of the paper is studying on the M&A direction and cultural enterprises’ competitiveness after the merger with determining three dimensions of M&A direction and optimizing the allocation of resources and realizing the strategic synergy as a breakthrough point. Finally, according to the result of empirical study, the study puts forward some related suggestions for cultural enterprises’ M & A decision. Hopefully, research results can provide cultural enterprises with guidance of the theory and practice in choosing the suitable M&A direction.