Research On The Influence Of Payment-methods On M&A Performance Of Cultural Enterprises

With the quotation of “new normal” for China’s economy and vigorous promotion of economic reform, the development of cultural industry has gradually attracted attention of the government. Promoting cultural industries vigorously has developed into a pillar industry of the national economy and it could play an effective role in the construction of socialist culture and power, which is the focus of our government that needed to be faced and solved. Moreover, local governments also respond to the initiative of the central government, and focus on the development of local cultural industries, support trans-regional, cross-industry mergers and acquisitions of cultural enterprises. From 1998 to 2015, the number of mergers and acquisitions of cultural enterprises soars, especially after 2006, the number of transactions began to rise sharply. But cultural mergers and acquisitions activity is not always effective, no one could ignore the quality of mergers and acquisitions even though there is large quantity. Whether the M & A performance is effective or not after using different payment emperors should be attract our attention in the study of the initial stage of China’s cultural merger.Based on the brief review of domestic and international M& Payment Performance of M&M as well as our culture studies, this paper would describe the current status of cultural enterprises and cultural industry mergers and acquisitions. This paper selects the listed companies of M & A transactions in the cultural industry from the year 2007 until 2012,analyzes the companies’ financial data in different methods of payment of the year before its merger, the year when it merges, one year and two years after the merger. At the same time, the writer aims to establish a comprehensive evaluation index system which would be used to analyze the changes of financial indicators based on the financial index method and calculate the comprehensive score on behalf of enterprise performance by using factor analysis. Based on the above, this article focuses on the analysis of the influences exerted by different methods of payment of cultural industries on the performances of the main company of the merger. Due to the limitations of the sources of data and payment limitations, this article pays much attention to analyze the influences on main side of the merger exerted by cash payment and stock payment.The writer arrives at the following conclusions: Generally speaking, China’s cultural enterprises stay in good operations after the merger by using cash payment, and there is no dramatic change. However, with the passage of time, the company’s ability and performance in different aspects would on decline. The company that merged in stock payment performs much better in integrating various resources after two years, which stimulates the improvement of the new company’s abilities. But we must recognize that the methods of China’s cultural merger payment is too limited, and there are few innovative payment methods. Thus, the enterprises and governments need to take targeted measures to optimize the effects of mergers and acquisitions, to jointly promote the development of China’s cultural industries’ mergers and acquisitions.