Study On The Performance Of Stock-for-stock Transaction Of GEM Listed Companies

To provide more convenient financing channels for small and medium-sized enterprises,China’s GEM officially opened in 2009.In recent years,due to fierce market competition,it’s hard for enterprises to continue their development only by means of endogenous growth,therefore,GEM has created a wave of merger,acquisition and reorganization of listed companies.For those companies appearing on the market two years before GEM had opened,they raised a lot of money when initially publicly offered.Hence,in terms of the choice of mode of payment in mergers and acquisitions,they tend to use cash.However,in recent years,with the percentage of GEM super funds decreasing,enterprise’s cash resources are not sufficient to pay the money needed for mergers and acquisitions.Meanwhile,there exists certain financial risk if financing.So it is preferred by enterprises through sharing swap.Therefore,what effect mergers and acquisitions will bring on enterprise performance is worthy of our in-depth study.Based on a representative case in the wave of GEM mergers and acquisitions: take it as the research object that Lanxum mergers and purchases YouTube Science and Technology Company by stock exchange.First of all,the study of domestic and foreign scholars on M&A performance is divided into two aspects: a positive impact and negative impact that mergers and acquisitions have on the performance will be expounded respectively.Secondly,the present situation of GEM mergers and acquisitions and its motivation will be carried out an analysis,combined with the characteristics of GEM.Thirdly,according to the data of Lanxum from 2011 to 2015,using financial indicators analysis,non-financial indicators analysis and EVA analysis,this paper analyzes the performance of Lanxum after it made an merger and acquisition YouTube Science and Technology Company.Finally,according to the research results,this thesis puts forward some pieces of advice on GEM listed company M&A,hoping to provide reference value for the future GEM M&A activities and promote the sound development of GEM listed companies.Through research and analysis,this paper draws the following conclusions: first,mergers and acquisitions is helpful to regulate industry structure,perfect the industry chain,enhance core competitiveness,and enterprise’s profit ability,operation ability,and debt paying ability all have been promoted to varying degrees after mergers and acquisitions;Second,stock mergers and acquisitions link both sides together closely,and make them have common interests,which effectively reduces the difficulty of M&A integration,contributing to the success of M&A.