A Study On The Motivation And Performance Of Merger And Acquisition Of Listed Companies In Financial Distress

With the development of economic globalization,the economic environment is more complex.Many uncertainties that the company faces have increased the company's financial risks which makes the number of Listed Companies in financial distress rising.Therefore,the recovery of the financial situation of the difficult company is concerned by more and more scholars and stakeholders.The healthy development of listed companies is the foundation of the stable development of capital market.So it is very important to study how to improve the business situation and realize the sustainable development of the financial distress enterprise.Financial distress enterprises can quickly acquire new resources,improve existing capabilities and acquire new capabilities through mergers and acquisitions,thus gaining competitive advantage and enhancing profitability.Therefore,the research of whether the Financial distress listed company can achieve its purpose of keep the company remaining in the stock exchange market and get rid of special treatment and sustained development through merger and acquisition and the analysis of the role of merge and acquisition in getting rid of the predicament combing with the characteristics of financial distress enterprises and the analysis of the motivation of its merger and acquisition have the great significance on a correct decision to get out of the dilemma of financial distress companies.Based on the combination of theoretical research and case study,this paper summarizes the concepts of financial distress at home and abroad,the motives of mergers and acquisitions of listed companies,the performance of mergers and acquisitions of listed companies,and the related research of financial distress and mergers and acquisitions of listed companies.Based on the theory of financial distress and mergers and acquisitions,this paper analyzes the characteristics of Listed Companies in financial distress and summarizes the motives of mergers and acquisitions of Listed Companies in financial distress,and establishes the merge performance evaluation index system on account of the motivation of merger and acquisition of the financial distress listed company.At the same time,on the basis of theoretical analysis,taking the representative *ST ALCHA CO.,LTD as an example,it analyzes the operating status and characteristics of acquisition motivation.By analyzing its performance based on the performance evaluation index,it comes to conclusion that merger and acquisition improves the performance of *ST ALCHA CO.,LTD,and its merger and acquisition motivation is realized.It confirms the rationality of theoretical analysis of financial distress in listed companies,and it finally draws the conclusion that the characteristics of Listed Companies in financial distress determine their motivations and financial distress listed companies can achieve their motivation through mergers and acquisitions.The innovation of this paper is to study the motivation and performance of listed companies' Mergers and acquisitions in financial distress,as well as,to establish the performance evaluation index system of merger and acquisition.In the past,the researches on the related issues related to the merger and acquisition of listed companies are based on the general listed companies,few research are on financial distress listed companies.Through the analysis of the special motivation of the listed companies in financial distress,taking *ST ALCHA CO.,LTD as an example,this paper calculates and analyzes the various motive evaluation indexes of their reflections in the field of "Paul shell hat",optimize the structure of assets and liabilities and sustained profitability etc.It examines the realization of mergers and acquisitions of Listed Companies in financial distress and provides the theoretical reference and guidance for the decision making of merger and acquisition of Listed Companies in financial distress.