Research On Target Companies' Anti-Malicious M & A Strategy And Economic Consequences

Since the reform of the split share structure,China's capital market has rejuvenated,and malicious mergers and acquisitions and anti-mergers have begun to occur frequently.Especially in 2015,insurance funds poured into the capital market for large-scale equity investments.Most of the investment targets were blue-chip stocks with good management and undervalued stock prices.The frequent holding of insurance funds has caused the capital market to fall into a certain chaos,and target companies have also sought anti-merger and acquisition strategies to defend against malicious mergers and acquisitions of insurance funds.However,due to the lack of anti-M & A theory and corporate experience in China,the target company has not implemented anti-M & A,or there are many problems in the selection and implementation of anti-M & A strategies.An in-depth interpretation of anti-M& A cases is urgently needed to guide the target company in anti-M & A.This article focuses on Vanke 's selection of anti-M & A strategies in the battle with Baoneng for equity,the effects of implementation,and the impact of the strategy on corporate market response,financial performance,and governance structure.Companies facing malicious mergers and acquisitions provide lessons learned.First,sort out related anti-M & A theories and introduce some mainstream anti-M & A strategies.Secondly,it introduces the development of malicious mergers and acquisitions in China,and analyzes the anti-mergers and motivations of Chinese enterprises and the main characteristics of the selection of anti-mergers and acquisitions strategies.Then,on the basis of understanding the malicious merger and acquisition of the company's Baoneng department and the target company Vanke,review the entire equity dispute process,and classify the anti-M & A strategies implemented by Vanke according to different implementation effects.Effective strategies such as suspension of trading suspension,seeking publicopinion,and legal proceedings And the introduction of white knights,and ineffective strategies such as the business partner system,stock repurchases and private placements,analyze the advantages and disadvantages of these strategies,and try to explore the feasibility of other anti-M & A strategies.Finally,to evaluate the impact of Vanke's implementation of anti-M & A strategy on enterprises,it mainly analyzes from the dimensions of stock price fluctuations,excess returns,financial indicators,and governance.After researching Vanke's anti-M & A strategy,this paper finds that after the implementation of the anti-M & A strategy to successfully resist malicious mergers and acquisitions,the company's stock price,financial indicators,and corporate governance will improve.It is hoped that the research in this article can provide experience for future target companies' countermeasures in the face of malicious mergers and acquisitions,and urge the target companies to actively choose anti-merger and acquisition strategies and block the actions of malicious acquirers in a timely manner.