The Impact Of Cross-industry Mergers And Acquisitions On Company Value

with China’s Listed Companies have been frequently touch to internet in recent years,various traditional industries merged Internet related industries to adjust the business structure,to achieve the transformation and upgrading of enterprises,then made the traditional business and the "Internet plus" integration.Industry insiders predicted that " Internet plus " cross industry mergers and acquisitions in the future will become the traditional enterprise fast channel to integrate and development.Under the background of slowing economic growth in China,the integration of traditional enterprises and the Internet can rapidly promote the upgrading of industrial chain and transformation of business operation.In a long period of time,M & A will still be an important means to promote the optimal allocation of market resources.However,cross industry mergers and acquisitions do not necessarily bring shareholder wealth and corporate value.The latest cross industry M & A case is conducive to analyze the motives,risks and practical effects of cross industry M & A and Provide advice and reference for enterprises and investors in cross industry mergers and acquisitions procession.This paper will analyze the impact of cross-border M & A on corporate value through case study,including short-term performance and intrinsic value of the company.The first part is that through reading a large number of books and literature,summarizing the theory of cross industry mergers and acquisitions,listing various views of domestic and foreign scholars to the influence of cross industry mergers and acquisitions on the value of the company;second is that through the collection of relevant news reports and information about the acquisition of Kun Bai Da A and Wo,data on mergers and acquisitions of listed company announcements,them read carefully and in-depth research.analysis the acquisition of object’s financial condition,merger risk,mergers motivation;finally through the event analysis and financial analysis,from a quantitative point of view,analysis the cross industry mergers and acquisitions whether can increase shareholder wealth and corporate value growth.The analysis results is that in the short term,the change of Kun Bai Da’s stock prices,which makes shareholders to obtain excess returns and increase shareholder wealth;in the long term,through calculated synergistic effect,found that synergistic effect is positive and create value for the company.To sum up,cross industry merger and acquisition can create enterprise value and increase the wealth of shareholders.