Analysis On The Supervision Effect Of Stock Exchange Inquiry Letters On M&A

As an important part of the cultural industry,the development of film and television industry is facing both opportunity and challenge.In recent years,the merger and acquisition of film and television companies often involves the phenomenon of high valuation and goodwill,which not only affects the capital market,but also further damages the interests of acquirer and small and medium-sized shareholders.As a front-line regulatory role,stock exchange inquiry letters play an increasingly important role in mergers and acquisitions.What is the supervisory effect of the inquiry letter? What is the mechanism of action? These problems have become a hot issue of current research.In the existing research,scholars believe that the exchange of inquiry letters will lead to negative consequences,prompting listed companies to improve information disclosure,reduce doubts about M&A activities,and improve M&A performance.Scholars at home and abroad are using large samples of empirical research,more concerned about whether the results of statistical tests support the hypothesis that the inquiry letter has regulatory effect,but do not care about the rigor of the theory itself,in this regard,there are still gaps in the existing literature,lack of in-depth study of relevant typical cases.In order to understand the rigor of the theory of regulatory effect of exchange inquiry letters.Firstly,the author uses data to analyze the high valuation and high premium of the M&A from the characteristics of the film and television industry;Then it introduces the process of Wanda Film's acquisition of Wa nda Media,expounds the motivation of the acquisition from the perspectives of resource integration motivation and supporting hypothesis,and analyzes the issues concerned by the exchange inquiry letter,why it is inquired and how the enterprises deal with them.How does the inquiry letter change the transaction scheme and final performance of M&A.Analysing the role path of inquiry letter's supervision effect,and test whether the supervision effect of exchange inquiry letter itself is established.Finally,in view of the above analysis obtains the corresponding enlightenment.From the internal measures,listed companies should take the initiative to improve the quality of information disclosure to prevent the distortion of information dissemination,so as to ensure the rational pricing of securities and efficient allocation of market resources.From the externa l measures,first,the regulatory authorities should continue to pay attention to the response information and increase the cost of violations,exchanges and the SFC system need to form a regulatory force;Second,third-party institutions sh ould also play a synergistic supervisory role to minimize the risk of high valuation in mergers and acquisitions.