M&A Performance Commitments And The Risk Of Stock Price Collapse

In the context of supply-side reform,mergers and acquisitions have become one of the company's main ways of implementing strategic goals and integrating internal resources.M & A is one of the important ways for enterprises to implement strategic goals and integrate resources.However,with the increasing frequency of China's M & A market activity,the issue of M & A performance commitment has also become apparent.In China's M & A practice,the underlying assets of performance commitments are mostly distributed in emerging industries;the outstanding rate of performance commitments also increases year by year or is extended with the delay of the commitment period;even if the performance targets are completed,they are mostly "accurately completed";commitments In the process,the proportion of connected transactions is relatively high,which has been increasing year by year.Behind this series of phenomena,there may be deeper risks hidden,which have a significant impact on the risk of listed company's stock price crash.In the existing research,the incentive effect of performance commitments has been verified theoretically and empirically,but whether the commitment issues such as high commitment targets between enterprises will bring risks remains to be studied.Therefore,it is necessary to discuss the impact of performance commitment on the risk of stock price crash from the perspective of performance commitment of mergers and acquisitions.This article takes the mergers and acquisitions of a gambling agreement signed by A-share listed companies from 2008 to 2017 as a research sample,and uses a combination of theory and empirical research to first build a model of performance commitment growth rate,compensation method,direction and stock market crash risk Secondly,it combines the factors of performance commitment growth rate and related party transactions to study the impact on the risk of crash.In further regression analysis,groups are made according to the nature of property rights and the information environment,explore the differences between groups under different property rights and environments,and use empirical methods to further verify the research hypothesis in this paper.The study found that:(1)the higher the growth rate of performance commitment,the higher the risk of stock price crash;(2)the share compensation and two-way performance compensation in the gambling agreement can reduce the risk of stock price crash.(3)When there are related transactions,it can significantly enhance the positive impact of performance commitment growth rate on the risk of collapse.The results show that reasonable and appropriate gambling agreements can reduce the risks arising from mergers and acquisitions.In response to the above conclusions,this paper proposes that the government and regulatory authorities should improve the relevant institutional arrangements for gambling agreements,strengthen the supervision of high-commitment,high-value mergers and acquisitions and reorganization;management of listed companies should sign reasonable commitments;investors should establish rational Investment ideas,avoid blind investment and other related suggestions.