M&A Behavior Research On Communication And Cultural Industrial Based On Industrial Chain Extension

In recent years,competition among enterprises has become increasingly fierce,and M & A decision has become more and more frequently used by enterprises as a means of enterprise growth,expansion and capital operation.At present,the integration of radio and television networks,telecommunication networks and the Internet has become a trend,so the communication and cultural industries usually carry out inter-firm M & A activities within their industry to make the industrial chain more complete.With the continuous adjustment of industrial structure,the deepening of China's economic system reform and the increasing international competition,this kind of enterprise mergers and acquisitions which based on the extension of the industrial chain has become an important way to enhance the strength of enterprises and re-allocate resources.Under such a circumstance,an acquisition events of a listed company—LE TV within the communication and cultural industry on the Second-board Market is selected as the research object in this paper.From the perspective of the extension of the industrial chain,using related M & A theory,this paper first introduced the industry mergers and acquisitions trend,the situation of the company and the key event,and analyzed the motivation of LE TV merging the Film of Flowers and the New Media from the perspective of mergers and acquisitions.Then this paper analyzed the merger strategy of this event,including the subject,the price and the choice of payment method.Finally,this paper analyzed the market performance and financial performance of this event from different respects by the Event-study Methodology and business performance comparative analysis method,and then drew the relevant conclusions,inspiration and prospect.By writing this article,it is found that after the M & A event,the company has improved both short-term and long-term performance,which shows that by merging high matching degree upstream business,communication and cultural industry can not only save the transaction cost,but also get the relevant supporting financing.Achieving the synergistic effect through the merger and acquisition,in order to further extending the industry chain is the development trend of the whole industry.Through the research of this paper,we hope to provide a reference for the performance evaluation of listed companies of the communication and cultural industries,provide advice for the managers when conducting merger activities and help investors in the stock market.