Research On The Financial Performance Of Hualu Baina's Acquisition Of Blue Flame

In the process of the development of China's capital market,some enterprises choose mergers and acquisitions for capital operation in order to continuously develop and grow.They hope to achieve the purpose of absorbing high-quality resources,expanding the scale of enterprises and improving their competitiveness through mergers and acquisitions,so as to obtain more benefits.Since 2013,China has accelerated the pace of comprehensively deepening the reform,and proposed to adapt to the new normal development of the economy,implement supply-side structural reform,and achieve the goal of cutting capacity and deleveraging.Mergers and acquisitions can also solve the problem of excess capacity of enterprises.These policies have driven the boom of mergers and acquisitions.In addition,China is focusing on the construction of cultural industry and vigorously promoting the development of cultural industry.But whether all mergers and acquisitions are able to achieve the above purpose,to enterprise's short-term and long-term performance after m&a has positive or negative impact,the wealth of shareholders will rise or fall,all need to evaluate the performance before and after the merger,therefore,of merger in enterprise performance evaluation is a research significance.From 2013 to 2015,the number of m&a cases in China has been increasing year by year.Among them,the largest m&a case in the cultural media industry in entrepreneurial sector in 2014 is the case of hualubaina's m&a of blue flame,which has also received great attention.This paper first introduces the background of the research,and then clarifies the purpose and significance of the writing.By referring to a large number of domestic and foreign literature,it is concluded that most of the existing research results are based on empirical research and pay attention to the financial performance of mergers and acquisitions.Secondly,the concepts of merger and acquisition,performance,evaluation and performance evaluation are defined,and the applied economies of scale,market forces,information and signal,and principal-agent theories are expounded.Then it introduces again the general situation of hualubaina merger and acquisition blue flame,which involves the general situation of the industry,the basic situation of the company,the process of merger and acquisition and the motivation of merger and acquisition.By analyzing the status of the media industry and enterprises,the performance evaluation index system of hualubaina merger and acquisition blue flame was constructed,and the performance evaluation method suitable for hualubaina was selected from the common performance evaluation methods,that is,the event study method was used to evaluate the short-term performance,and the entropy weight method was used to evaluate the medium and long term financial performance of enterprises.The results show that in the short term,the accumulativeexcess return rate of huarubaina is on the rise,and the m&a activity increases the wealth of shareholders.From the results of performance evaluation in the medium and long term,the performance of the enterprise shows a downward trend,which brings a negative impact on the enterprise.Thirdly,four Suggestions are given to improve enterprise performance,strengthen cost control,avoid the same type of products,and reduce the waste of resources.Enhance the integration,and redeploy the production,operation and financial aspects after the merger and acquisition;Improve profitability and turn losses into profits;Strengthening risk control.Finally,the following Suggestions are provided for the mergers and acquisitions of other enterprises in the culture and media industry and the improvement of their performance.Choose the appropriate payment method;Strengthen internal integration after merger and acquisition;Strengthen the ability of risk prevention and control,in order to expect the industry other mergers and acquisitions can get better development.