Performance Research On Merger And Acquisition

With the "Several Opinions of the State Council on Further Promoting the Healthy Development of the Capital Market" promulgated in 2014,the tide of mergers and acquisitions among securities companys in the securities industry in China has once again begun to rise.The policy promulgated by the State Council aims to promote the development of specialization,differentiation and specialization in the securities industry.Before this,there have been three waves of mergers and acquisitions taking place in China's securities industry.However,with the development and changes of the times,China's securities companies need to continuously seek development with higher standards and stricter requirements.This paper use Shenyin Wanguo & Hongyuan Securities as a case to study.It used case analysis method,literature research method,event research method,and financial index analysis method from macroscopic to microscopic perspectives to provide a more comprehensive analysis of the merger performance of the two companies from short-term to long-term.Shenyin Wanguo is China's first joint-stock securities company established in Shanghai.Hongyuan Securities registered in Xinjiang and it was the first listed securities company in China.The mergers and acquisitions of the two companies are not only the typical mergers and acquisitions of securities companys in the background of “one reference and one control”,but also powerful combination between two distinctive companys.Mergers and acquisitions among securities companies are certainly a way to increase the strength of securities companys,but in practice they are not always able to achieve 100%satisfactory results.In any industry,mergers and acquisitions between companies have both successes and failures.Mergers and acquisitions can bring the advantages of expanding the scale of capital and improving the overall competitiveness of enterprises and complementing each other to improve their competitiveness.However,mergers and acquisitions may also fail to achieve the desired results because of the cultural fusion and the combination cannot gain a good result.Therefore,in addition to analyzing the performance of Shenyin Wanguo's merger and acquisition of Hongyuan Securities through various indicators,this article also focuses on the factors that will have a negative impact on the positive performance of both mergers and acquisitions,and summarizes the corresponding staffing strategies and concerns.Theenlightenment of cultural integration and post-acquisition enhancement of mergers and acquisitions is expected to make a contribution to the future of mergers and acquisitions by securities companies in China to reduce personnel management risks,resist cultural integration risks,and prevent business integration risks.