Study On M&A Motivation And Performance Of Chinese Cultural Enterprise

In recent years,as the government makes more favorable policies on the cultural industry,there are more and more investors rushing into this industry.With the backup force of government policy and the demand of cultural industry,many merger and acquisition cases rise up.So there need more theories of cultural industry on merger and acquisition.This paper wants to research on the merger and acquisition motivation and its accounting performance after merger and acquisition on the base of the existing method and hypothesis.We start this paper form the conclusion of theories and documents.Then we introduce both companies in this case about their basic information,operation information and the revenue before merger and acquisition.In the part of case analysis,we study the motivation of the merger.Besides,we use the method of event study analysis and financial index analysis in the part of case analysis.The method of event study analysis can measure the short-term performance and we calculate the AR and CAR index to measure how it affects the company's stockholder's equity.And we use the financial index analysis to measure the medium and long-term performance of the M&A.In this paper,we have an understanding of the merger and acquisition motivation and its accounting performance.Above all,the merger company has achieved its merger and acquisition motivation and also gained excellent accounting performance no matter in the short term or in the long run.We would like to find out that other companies can gain some experience and lessons from the above case.