Research On The Unfinished Performance Commitment In Mergers And Acquisitions

In the changing of the market environment,the challenge is to be more and more difficult,and today,with the success of a certain grade of enterprises trying to expand their scale,they don't rely entirely on their own development but they're actively using external powers like mergers and acquisitions,and they're getting a place in the ever-changing market.As a way of enterprise development,M & A is characterized by its high risk and high information mismatching.Since the performance commitment in 2008 in China began to rise to the scope of application is expanding,private equity and enterprise mergers and acquisitions are the two most widely used aspects.The performance commitment agreement has developed to the present day,and there have been a large number of performance commitments that failed to complete the case.For listed companies,not only the stock price decline,but also the huge amount of goodwill impairment affects the net profit.Based on the performance commitment theory,this paper analyzes the status quo of performance commitment,analyzes whether the performance commitment clause is set up reasonably,and then conducts further analysis by selecting 43 companies whose 2017 annual performance commitment rate is less than 50% and reveals the reasons for unfinished.The reasons for discovering the impact of their performance commitments can be divided into management,human interference,environmental policy changes,expected progress of new business,cost and customers.Then,the case analysis was introduced to select the case of Huangshi Group's acquisition of Shengshi Sun,to explain the M&A case overview and performance commitment content,and to analyze the reasons for the failure to complete the performance commitment and the consequences of failure to complete the commitment.And evaluation.Finally,the performance commitments of listed companies' mergers and acquisitions are proposed and conclusions from the company and policy levels,and provide reference for future research.