The Motivation And Economic Consequences Of Valuation Adjustment Mechanism In Mergers And Acquisitions

In recent years,the international and domestic economic situation has become more and more serious.It is very difficult for enterprises to rely solely on their own strength to base themselves and develop in the capital market.More and more enterprises tend to expand their market share,improve their competitiveness and enhance their value by means of M & A.but in the process of M & A,This capital game is highly risky and uncertain because of asymmetric information.In order to reduce the risks in mergers and acquisitions,entrepreneurs and financiers have tried different financial instruments.It is generally believed that the most effective and accepted is the gambling agreement.The application of the gambling agreement in China began in 2003.The successful gambling of Mengniu dairy industry has attracted more and more enterprises in our country to join the gambling agreement in practical application.But there are also some enterprises because of the wrong understanding of the gambling agreement and the wrong pre-judgment of their own development,resulting in the failure of gambling,resulting in a huge amount of compensation and loss of control and other serious consequences.How to correctly recognize the advantages and disadvantages of the gambling agreement,understand and use the inherent mechanism of the gambling agreement,and rationally set the goal of gambling,Avoiding and preventing the inherent risks is of great significance to maximize the role of the gambling agreement,at the same time to speed up the process of low-cost financing and rapid expansion,and to constantly improve and develop China's capital market.In recent years,in order to improve people's cultural level and enrich people's spiritual life,our government has formulated a series of policies to encourage the development of cultural industry.In addition to the rapid development of the film and television media industry,there is also the background of the Internet and the support of the capital and stock market.As one of the most influential film and television media groups in China,Huayi Brothers based on its abundant film and television resources and also through continuous mergers and acquisitions of upstream and downstream enterprises to expand their film empire territory.This paper adopts the method of case analysis and contrast analysis,taking Huayi Brothers Series M & A as a case study,focuses on the analysis of motive and economic consequence of the application of gambling agreement in enterprise merger and acquisition.This paper introduces the research background and significance,theoretical basis,research ideas,contents,methods and so on.At the same time,it combs the existing literature about the motivation and economic consequences of M & A and gambling agreements.The paper also combined with information asymmetry theory,principal-agent theory,option theory and other theories to provide theoretical support for the application of gambling agreements.Secondly,this paper analyzes the current situation of the application of gambling agreements in mergers and acquisitions of enterprises in China,including the application trend,industry classification and statistical analysis of gambling results.Thirdly,taking the series of M & A activities of Huayi Brothers Media Co.,Ltd as an example,this paper combs the process of three M & A activities and makes a comparative analysis of the details of the gambling agreements.At the same time,based on the analysis of the internal and external environment of Huayi Brothers M & A cases,this paper explores the reasons for the application of gambling agreements in the M & A cases.Focusing on the Huayi Brothers M & A case,the economic consequences of the gambling agreement are analyzed in detail,including the analysis of the financial situation,which reflects the long-term benefits,and the analysis of stock price movements,which reflect the short-term benefits.Finally,combined with the case study,the conclusion of the above research is summarized,and the optimization suggestions for the application of gambling protocol are put forward.In this paper,the research purpose is to bet on rich agreement behind the system integrity,mining its theoretical depth,and demonstrate the necessity and feasibility of using the bet protocol in mergers and acquisitions,to bet against protocol in the application of mergers and acquisitions to provide reference.