The Impact Of Performance Commitment On The Performance Of Listed Companies In Mergers And Acquisitions

In recent years,the application of performance compensation commitment in mergers and acquisitions has become more and more common in China,and the application of performance compensation commitment may have a significant impact on the performance of listed companies.Specifically,this study mainly focuses on the impact of performance compensation commitment on mergers and acquisitions,the impact on the accumulated excess earnings of stock prices in a period of time after the announcement,and the impact on the performance of listed companies.The main research content of this paper is to select the listed companies' M&A incidents first disclosed from January 1,2016 to December 31,2017,and obtain 421 sample data through some screening.Further,through the linear regression model,we empirically analyze whether the performance compensation commitment in M&A restructuring has an impact on the accumulated excess earnings of stock prices in a period of time after the announcement,as well as the significant factors of accumulated excess returns.Through theoretical analysis and empirical research,this paper draws the following conclusions.Firstly,performance compensation commitment events have been widely used in M&A and restructuring activities in China,and the application proportion is on the rising trend.Secondly,whether there is performance compensation commitment in M&A and restructuring events will have a significant impact on M&A and restructuring itself.Thirdly,the performance compensation commitment event has a significant impact on the cumulative excess earnings within five or ten trading days after the announcement.The specific factors affecting the excess earnings include the PE multiple of the purchase price relative to the performance commitment,whether the operation of the target company is related to the operation of the listed company,whether it is related restructuring and the form of compensation.Fourthly,in 166 samples that have published the actual net profit of the listed companies,the vast majority of the target companies have fulfilled their performance commitments at the time of mergers and acquisitions,and the general situation is that they slightly exceed their previous performance compensation commitments.