Performance And Risk Analysis Of Cross-border Mergers And Acquisitions In China's Cultural Industry

After joining WTO in 2001,China's cultural industry is faced with more and more fierce competitive advantages from other developed countries,which provides opportunities for the development of China's cultural industry.Under the dual pressure of domestic and foreign countries,the development of China's cultural industry has become an urgent task to cope with the trend of economic globalization.With the recent launch of numerous preferential policies for the development of cultural industry in China,more and more cross-industry investors have also joined this field.With the strong support of the country,the cultural industry has made great profits by virtue of its asset-light ratio and high return with low investment.More and more cultural enterprises adopt the method of merger and acquisition to achieve the purpose of expanding the enterprise scale.With the increase of the number of crossborder mergers and acquisitions,the losses caused by the failure of merger and acquisition activities also increase sharply.Therefore,it is more and more important to analyze the reasons for the failure of merger and acquisition activities.In this paper,through research and analysis wanda film acquisitions legendary pictures,this is a typical case of transnational m&a,cultural industry first analysis of the m&a motivation,secondly from multiple angles,analysis of wanda film the performance of the legendary pictures of transnational merger and acquisition,combining with the analysis of data after the conclusion,summarizes the enlightenment of the acquisition and the suggestion,provide experience for the domestic cultural enterprises transnational mergers and acquisitions in the future.This paper firstly summarizes the research results of m&a in cultural industry in China so far,summarizes the literature on cross-border m&a of cultural enterprises at home and abroad,and introduces the concept of cross-border m&a,the motivation of cross-border m&a and the performance evaluation method of cross-border m&a.Secondly,this paper introduces the cross-border acquisition of legendary pictures by wanda film and television in 2016,including the information of wanda film andlegendary pictures involved in the acquisition,as well as the merger process.Next,the paper analyzes the motivation of the acquisition of wanda film.In terms of performance research,the author USES the method of event study,factor analysis,sub-dimension financial index analysis and non-financial index analysis,analyzes its performance from the perspective of short-term and long-term,financial and nonfinancial,draws the corresponding experience and lessons,and summarizes the conclusions of this paper.Based on the research,this paper concludes that the cross-border merger of legendary pictures by wanda has not realized the purpose and requirements of the merger.After the merger,the stock market value of the enterprise was not improved in a short term,indicating that the stock market did not respond positively to the merger and acquisition and did not significantly increase the wealth of shareholders.At the same time,in the long run,there are still many deficiencies in the operation and debt repayment of wanda film and television after the merger,and non-financial indicators also reflect that the merger did not achieve synergies,and there are deficiencies in the integration after the merger.Therefore,from the research of this paper,it can be seen that the preparation in the early stage of m&a,such as the choice of financing method,the determination of m&a objectives and the integration of various aspects after the later stage of m&a,are important factors affecting the success of m&a.This analysis is helpful to provide experience for other cultural enterprises to carry out transnational mergers and acquisitions in the next stage,provide the direction to analyze the performance of mergers and acquisitions,and provide reference value.