Study On The Pure Financial Effect In Conglomerate Merger Behavior Of The Company

This paper explains to some extent the traditional financial synergies theory cannot explain the "Mergers" problem. In recognition of the theory of financial synergies while paper argues that in order to pursue acquisitions or to reduce the probability of obtaining a joint bankruptcy, such as upgrading the stock value terms, debt capacity and stable cash flow. This from a risk point of view, emphasizing the value system of risk is purely financial effect theory, it is a supplement to the theory of financial synergy, which is to improve the theoretical system of mixed mergers and acquisitions practice guide business mix has far-reaching.The papers based on the financial effects of conglomerate mergers pure theoretical research, the combination the research methods of descriptive statistical analysis method and case analysis method to research papers. Firstly, Using 43 enterprises occurred in 2005-2012 years as research samples to solve the mixed mergers whether obtaing pure financial effects in china, through the contrast before and after of Financial index volatility. Then, on the use of multiple case study method to Inner Mongolia Erdos Cashmere Co., Ltd., Sunning Commerce Group Co., Ltd. and Jiang Xi Zhong Jiang Real Estate CO.,Ltd in the Conglomerate Merger as a case sample, From a financial index volatility, The value of the stock and Enterprise three aspects to analyze whether mixed mergers purely financial effects. The specific practices:Finally, systemic risk, business prospects and business value aspects to analyze whether mixed mergers, brings pure financial effect and brought the kind of pure financial effects. Combining with mergers and acquisitions announcement on this basis, and others announcements and directors’ report and annual understand the business of the purely financial effects of cognition and whether there is a net financial effect of the use of "consciousness." The results show that: purely financial effects of the three listed companies in mergers mixing behavior; The companies to some extent realized net financial effect but there is no obvious "consciousness" that is purely financial effects of mergers and acquisitions as one motive and get the expected net financial effect; among financial effect exist purely financial effect, net financial effect of the financial effect is not necessarily exist, so the success of the merger evaluation criteria cannot be limited to the financial effect, you should also take into account the net financial effect.