The Analysis Of The Motivation And Performance Of Everbright Securities Merger And Acquisition Sun Hung Kai Financial

As a major component of China's financial industry,the securities industry has made great achievements in the development process in recent years.At the same while,acquisitions among companies occurred continuously in the securities industry.Some large-scale securities companies aim to expand new business,occupy new business market,and integrate human resource through mergers and acquisitions.By implementing a well-established appropriate plan,the related parent company can achieve positive synergies goal.The analysis of the motivation and performance of mergers and acquisitions can help companies recognize whether this merger is reasonable,whether the acquisition can produce synergistic effect in the future and whether they can achieve the original goal.In this paper,the case of Everbright Securities' acquisition of Sun Hung Kai Financial was considered as the object of study,and an in-depth and systematic analysis of the motivation and performance of this merger and acquisition was conducted.This paper made detailed analysis and research on this merger from three aspects:the analysis of performance of this acquisition to shareholders,the analysis of the financial indicators and the comprehensive analysis.The enlightenment at the end of this paper and the corresponding suggestions on the problems caused by this merger was elaborated.The paper is divided into five chapters.The first chapter is the introduction part,which introduces the background and significance of the research.This part includes the domestic and foreign research on performance evaluation as well as the research content and methods of the paper.The second chapter is the part of theoretical explanation,introducing mainly the related theories of the motivation and performance analysis of mergers and acquisitions.The third part is an introduction to the case.This chapter introduces briefly the company's profile and the development situation of Everbright Securities and Sun Hung Kai Financial.The fourth part is introducing detailedly the analysis of the motivation of Everbright Securities merger and acquisition Sun Hung Kai Financial.The performance analysis part in fifth chapter is divided into three sections:using Event Study Method to analyze the shareholders'performance of mergers and acquisitions,analyzing Everbright Securities financial indicators before and after mergers and acquisitions and the analysis based on Z-score Formula.The last chapter includes both the conclusion and inspirations.It concludes that this merger has played a very positive role in expanding international business for Everbright Securities through the above comprehensive analysis in previous chapters.At the end of this paper,it explains the enlightenment brought about by this merger.tors include social and economic factors,interest rates,inflation factors and natural environment.